Question Use the direct method to allocate the following service costs to the operating departments. In your answer, show the final total costs for both operating departments. Kovac Printing Company has three service departments and two operating departments. As an allocation base the Personnel dept uses # of employees, the Maintenance dept uses machine repair hours and the Janitorial dept uses square meters. Selected data for the five departments related to the most recent period are as follows: OH Costs # of Employees Square meters Machine repair hours Service Depts: Personnel $360,000 120 1,000 Maintenance $210,000 70 2,000 Janitorial $96,000 280 4,000 Operating Depts: Offset $300,000 630 4,000 10,000 Printing Lithography $534,000 420 10,000 30,000 Total $1,500,000 1,520 20,000 40,000