! Required information The James Company has four departments with data as follows: Service Departments Operating Departments Cafeteria Maintenance Milling Finishing $12,000 $10,000 $42,000 $38,000 Budgeted Costs Number of Employees Labour Hours 12 10 84 66 1,500 1,250 5,2501 4,750 (Appendix 11A) Suppose Maintenance Department costs are allocated on the basis of labour hours. What would be the amount of cost allocated to Milling from Maintenance under the direct method? ! Required information The Northern Division of the Gordon Company reported the following data for last year: Sales Shareholders' Equity Operating Expenses Average Operating Assets Interest Expense Tax Expense Minimum Required Rate of Return $900,000 $320,000 $700,000 $500,000 $50,000 $60,000 15% What was the residual income for the Northern Division last year