Philco Pets operates a petstore and a pet gooming salon. Philco also has 2 support departments as shown. Information about Philco Pets is shown in the table to the left. Reporting costs are allocated based on the # of employees Custodial costs are allocated based on the square meters used

Philco Pets:

Dept Direct Costs # Employees Sq Meters

Reporting 60,000 2 1,000

Custodial 40,000 3 1,000

Pet Store 72,000 5 3,000

Grooming 90,000 7 5,000

Required: Using Excel

1. Allocate SOH costs using the direct method

2. Allocate SOH costs using the step down method with Reporting allocated first

3. Allocate SOH costs using the step down method with Custodial allocated first