Problem 17-25 Dual Allocation of Service Department Costs (LO 17-1, 17-2) [The following information applies to the questions displayed below.) Tampa Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Assembly. There are three service departments: Maintenance, Human Resources (HR), and Computer Aided Design (CAD). The usage of these service departments' output during the year just completed is as follows: Provision of Service Output (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 500 CAD 500 500 Machining 4,000 4,000 4,000 Assembly 5,000 4,500 1,000 Total 10,000 9,000 5,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Variable Fixed $ 59,000 280,000 Total $339,000 Maintenance $ 92,000 242,000 $334,000 CAD $ 59,000 340,000 $399,000 When Tampa Instrument Company established its service departments, the following long-run needs were anticipated. Long-Run Service Needs (in hours of service) Provider of Service User of Service HR Maintenance CAD HR Maintenance 1,000 CAD 1,500 1,700 Machining 3,000 5,000 4,000 Assembly 4,500 2,300 1,000 Total 10,000 9,000 5,000 Required: Use dual cost allocation in conjunction with each of the following methods to allocate Tampa Instrument Company's service department costs: (1) direct method and (2) step-down method. Problem 17-25 Part 2 2. Step-down method combined with dual allocation.. a. Variable costs b. Fixed costs c. Total costs allocated Answer is not complete. Complete this question by entering your answers in the tabs below. Req 2A Req 28 Req 2C Step-down method combined with dual allocation for fixed costs. (Do not round intermediate calculations. Round your final nearest dollar amount.) Service Departments Production Departments Machining Assembly Costs prior to allocation Allocation of HR Department costs Allocation of Maintenance Department costs Allocation of CAD Department costs Total fixed cost allocated to each department HR Maintenance CAD $ 280,000 ( $ 280,000 242,000 ( 28,0000 270,000 $ 340,000 $ 340,000 0