Logan Products has two production departmentsassembly and finishing. These are supported by two service departmentssourcing (purchasing and handling of materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments.

Total Labor Hours Used by Departments

Sourcing Operations Assembly Finishing

Sourcing - 20,000 40,000 60,000

Operations 10,000 - 60,000 50,000

The costs incurred in the plant are as follows:

Departments Departmental Costs

Sourcing $200,000

Operations 300,000

Assembly 448,000

Finishing 293,000

Total $1,263,000

Required:

Use fourdecimal places (e.g., 33.3333%) in your calculation of percentages.

1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, whenthe sourcing department that provides the greatest percentage of services to other service departments goes first), and (c) the reciprocal method?

2. What are the total costs in the production departments after allocation?

(For all requirements, do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)

Can you please help me I have no idea what to do. The book is showing different examples.