Pearl Manufacturing produces wooden outdoor furniture. Pearl uses the step-down method to allocate service department costs to the production departments. There are two service departments: administration and custodial services, and two production departments: cutting and assembly. Allocates administration costs first followed by custodial services costs. Administration costs are allocated based on labour hours, and custodial services costs are allocated based on space occupied. Direct costs Labour hours Space occupied (m2) * units produced Administration $174,100 12.900 4,800 Custodial Services $96,100 9,400 4,800 Production Departments Cutting Assembly $342,500 $696,100 28,300 46,900 18,010 31,840 54,500 90,500 (a1) Your answer is correct. Allocate the administration costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Custodial Services Production Departments Cutting Assembly Allocation of administration cost 19344.44 58239.13 96516.43 SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 2 of 3 used (a2) x Your answer is incorrect. Try again. Allocate the custodial services costs to the production departments. (Round intermediate calculations to 6 decimal places, e.g. 1.246873 and final answers to 2 decimal places, e.g. 15.25.) Production Departments Cutting Assembly Allocation of custodial services costs LINK TO TEXT