To Service Departments Production Departments From S-1 S-2 P-1 P-2 S-1 10% 10% 0DO 60% 20% S-2 20% 20% 20% 40% Service costs to be allocated are: aulissols gold Department Amount S-1 $3,000 S-2 1.000 Required: bus mantis vidarsaad Isiod gniwode sluborise a sagar :1 (a) Allocate the service department costs to production departments by using: (1) The Direct Method (2) The Step Method (allocate S-2's costs first).madigan laws (3) The Linear Algebra Method. got ant gahobianog zi ynegros silT (d) 7-33 Allocation of Service Department Costs The Howell Company uses the following as basis for allocating service department -ag sift costs to production departments. sshrine to go Service Department Base Store room Number of requisitions Factory Administration Number of employees Repair and Maintenance Number of service requests Relevant data fox a period are: methane Lagtrade to :26-8 Service 21970 Costs to be sm A Department Requisitions Employees Requiests Allocated Store Room 10 20. 15 $10,000 Factory Administration 5,000 Repair and Maintenance 10 vbest 10.d Amorning 5. 20 10 5 Its of ng: Production - Dept. A 30 Production - Dept. B 30. dad is 40. 5,000 20 100 Required: awollol an oth expandsgrog ing methods: Allocate the service department costs to the production departments using the follow- (1) The Direct Method (2) The Step Method (according to the following sequence: Store Room, Factory Administration, and Repair and Maintenance) 7-34 Service Cost Allocations A plant operates its own steam-generation facility under the administration of the utilities department. The other service departments are janitorial and personnel. The assembly department manufactures the plant's output, and the packaging department 203