Steven's Battery Company has two service departments, Maintenance and Personnel Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance hours Personnel Department costs of $80,000 are allocated based on the number of employees The costs of operating departments A and B are $160,000 and $240,000, respectively Data on budgeted maintenance hours and number of employees are as follows Support Departments Maint Dept Personnel Dept Production Departments A B Budgeted Costs $320,000 $80,000 $160,000 $240,000 Budgeted maintenance hours NA 800 960 640 Number of Employees 40 NA 160 480 Required 1 Allocate the costs of the service departments to the production departments using the direct method 2 Allocate the costs of the service departments to the production departments using the step down method, if the service department with the highest percentage of interdepartmental support service is allocated first (Round up)

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Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department

Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $80,000 are allocated based on the number of employees. The costs of operating departments A and B are $160,000 and $240,000, respectively. Data on budgeted maintenance-hours and number of employees are as follows:

	Support Departments Maint Dept Personnel Dept	Production Departments A B
Budgeted Costs	$320,000 $80,000	$160,000 $240,000
Budgeted maintenance hours	NA 800	960 640
Number of Employees	40 NA	160 480

Required:

1-Allocate the costs of the service departments to the production departments using the direct method

2-Allocate the costs of the service departments to the production departments using the step-down method, if the service department with the highest percentage of interdepartmental support service is allocated first. (Round up)