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[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				3,500				4,500
	Assembly			5,000				4,000				1,500
	Total			10,000				8,000				6,000

The budgeted costs in Tampa Instrument Companys 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

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		500
	CAD		1,000				800
	Machining		3,500				4,800				4,800
	Assembly		5,000				2,400				1,200
	Total		10,000				8,000				6,000

Required: Use dual cost allocation in conjunction with each of the following methods to allocate Tampa Instrument Companys service department costs: (1) direct method and (2) step-down method.

1. Direct method combined with dual allocation. a. Variable costs b. Fixed costs c. Total costs allocated

Direct method combined with dual allocation for variable costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

	Production Departments
Provider of Service	Machining	Assembly
HR
Maintenance
CAD
Total variable cost	$0	$0

Direct method combined with dual allocation for fixed costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

	Production Departments
Provider of Service	Machining	Assembly
HR
Maintenance
CAD	240,000
Total fixed cost	$240,000	$0

Direct method combined with dual allocation for total costs allocated. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.)

	Machining	Assembly
Variable costs
Fixed costs
Total costs	$0	$0