Problems All applicable Problems are available in Connect. = connect Tampa Instrument Company manufactures gauges for construction machinery. The company has two Problem 17-24 production departments: Machining and Assembly. There are three service departments: Maintenance, Direct and Step-Down Meth- Human Resources (HR), and Computer Aided Design (CAD). The usage of these service departments ods of Service Department output during the year just completed is as follows: Cost Allocation Provision of Service Output (in hours of service) (LO 17-1) Provider of Service 1. HR department cost allo- cated to assembly: $138,889 User of Service HR Maintenance CAD 3, HR department cost allo- HR ...... cated to CAD: $12.500 Maintenance 500 CAD ... 500 500 Machining 4.000 3,500 4.500 Assembly ... 5.000 4,000 1.500 Total Samummm 10,000 8,000 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Maintenance CAD Variable . $ 50,000 $ 80,000 $ 50,000 Fixed 200,000 150,000 300,000 Total ... $250,000 $230,000 $350,000 Required: 1. Use the direct method to allocate Tampa Instrument Company's service department costs to its production departments. 2. Determine the proper sequence to use in allocating the firm's service department costs by the step- down method. 3. Use the step-down method to allocate the company's service department costs. 4. Build a spreadsheet: Construct an Excel spreadsheet to solve requirements (1) and (3) above. Show how the solution will change if the following information changes: the budgeted variable costs in the three departments are $60,000, $70,000, and $55,000, for Human Resources, Mainte- nance, and CAD, respectively