PROBLEM Armstrong has two service departments (maintenance and computing) and two production departments (assembly and testing). Maintenance costs are allocated on the basis of square footage occupied, and computing costs are allocated on the basis of the number of computer terminals. The following data relate to allocations of service department costs: Maintenance Computing Assembly Testing $700,000 $900,000 Service department costs Square footage Terminals 84,000 6 36,000 14 Required: Allocate the service department costs to production departments using the direct method