Smart Company has two service departments, Administration service (AS) and Information System (IS). AS costs of $400,000 are allocated on the basis of labor hours. IS costs of $500,000 are allocated based on the number of computers. The costs of operating departments Cutting and Assembly are $800,000 and $450,000, respectively. Data on budgeted labor hours and number of computers are as follows: Support Departments Production Departments Administration Information Cutting Assembly service (AS) System (IS) Costs before allocation $400,000 $500,000 $800,000 $450,000 500 10,000 Labor hours 15,000 Number of computers 10 25 15 Required: Use direct method to allocate the support department costs to production departments? (round the results) Support Departments Production Departments Administration Information service System Cutting Assembly (AS) (IS) Costs before allocation $400,000 $500,000 $800,000 $400,000 Allocate AS costs Allocate IS costs Costs after allocation