Sylvie Corporation has three production departments: K, D, and C. It also has two service departments: Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department. Department Administration Personnel Direct Costs Employees Asset Value 1,800,000 50 900,000 700,000 20 1,200,000 K 1,400,000 30 600,000 400,000 10 300,000 500,000 20 1,600,000