The Cutright Company has a small factory with two service departments, Power and Maintenance, and two producing departments, Cutting and Assembly.

The Power Department cost is allocated on the basis of kilowatt hours, and the Maintenance Department cost is allocated on the basis of maintenance hours. The following information is available:

	Power	Maintenance	Cutting	Assembly
Departmental cost before allocations	$100,000	$40,000	$200,000	$160,000
Kilowatt hours	50	200	600	200
Maintenance hours	20	30	150	100

Required: Using the Direct Method and Step Method, allocate the costs of the service departments to the 2 operating departments.