Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (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 Assembly Sourcing Operations Sourcing 10,000 Operations 20,000 The costs incurred in the plant are as follows: Departments Sourcing Departmental Costs $ 216,000 290,000 444,000 289,000 $ 1,239,000 40,000 60,000 Operations Assembly Finishing Total Required: Finishing 60,000 50,000 1. What are the costs allocated to the two production departments using (a) the direct method, (b) the step method, when the 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 answers to nearest whole dollar amount.) Answer is complete but not entirely correct. Total Service Department Cost Total Production Cost Allocated a. Direct Method Assembly $ 86,400 $ 688,582 Finishing 289,000 550,418 b. Step Method Assembly 177,818 x 693,818 Finishing 148,182 545,182 C. Reciprocal Method Assembly Finishing 0 444,000 0 289,000 x