Memorial Services, Incorporated $($MSI$)$ has three service departments $($IT$,$ Accounting, and HR$)$ and two production departments $($West

and East$).$ The usage data for each of the service departments for the previous period follow:

The direct costs of the service departments in the previous period were $$87,000$ for IT$,$ $$100,000$ for Accounting, and $$115,000$ for $HR.$

Required:

Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by

$IT,$ and then Accounting.

Note: Amounts to be deducted should be indicated by a minus sign.