The following information is available for Horizon Company:

Service Departments Production Departments

A B $12$

Department costs $$4,000$ $$2,000$ $$9,000$ $$18,000$

Total labor hours $1,0002,5004,5003,000$

Square footage $1,0006,0008,0002,000$

Assume that both service departments provide services to each other. Costs for service department A are allocated based on square footage, and costs for service department B are allocated based on total labor hours.

Required:

Using the direct method, allocate the service department costs for Horizon Company and calculate total costs for each of the production departments