Problem $11-62($Algo$)$ Allocate Service Department Costs: Direct and Step Methods $($LO $11-1)$

Western Services has three service departments: Information Systems $($IS$).$ Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows:

The costs of the service departments and the allocation basis for each department follow.

Requlred:

$0.$ Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems $($IS$)$ Department costs will be allocated to the Commercial Department?

b$.$ Assume the same method of allocation as in requirement $($a$).$ What amount of Personnel Department costs is allocated to the Residential Department?

c$.$ Assuming that the company allocates service department costs to other departments using the step method $($starting with Administration and then IS$),$ what amount of Administration Department costs is allocated to the IS Department?

d$.$ Assume the same method of allocation as in$\text{'}$ requirement $($c$).$ What amount of IS Department costs is allocated to Administration?

Complete this question by entering your answers in the tabs below.

Required $A$

Required $B$

Required $C$

Required D

Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems $($IS$)$ Department costs will be allocated to the Commercial Department? Note: Do not round intermediate calculations.

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