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. Sourcing Operations Sourcing Departments Sourcing Operations Assembly Finishing Total 10,000 Total Labor Hours Used by Departments Assembly 40,000 60,000 Operations 20,000 The costs incurred in the plant are as follows: Departmental Costs $ 174,000 220,000 416,000 261,000 $1,071,000 Finishing 60,000 50,000 Required: Use four decimal 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, 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 answer to nearest whole dollar amount.)

Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (purchasing and handling of materlals 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. The costs incurred in the plant are as follows. Required: Use four decimal 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, 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 cosis in the production departments after allocation? (For all requirements, do not round intermediote colculations. Round your final answer to nearest whole dollor omount.)