Use the following information for problem #2 - Worth 13 Points: Wewantmore Company has two (2) service departments and two (2) operating departments. Budgeted costs and other data relating to these departments are presented below: Service Departments Operating Departments Janitorial Personnel B $54,000 $200,000 $650,000 $800,000 Departmental costs 1,000 3,000 12,000 15,000 Square feet occupied 10 5 45 55 Number of employees Direct labor hours 76,000 92,000 The costs of Janitorial are allocated on the basis of square feet of space occupied. The costs of Janitorial are allocated on the basis of square feet of space occupied. Personnel costs are allocated on the basis of the number of employees. The departmental costs for the operating departments are overhead costs. Predetermined overhead rates in the operating departments are computed on the basis of direct labor hours. Remember to SHOW your work! (a) If the company uses the direct method to allocate service department costs to the operating departments, How much Janitorial cost would be allocated to Department A? (4 pts) (b) If the company uses the direct method to allocate service department costs to the operating departments, the predetermined overhead rate per direct labor hour that would be used in Department B would be? (Hint: You will need to determine the total costs that would be charged to Department B) (6 pts) Question 2013 points) Using the same information given to you in problem #2, answer the following: If the company used the step method to allocate service department costs, the total amount of cost allocated from the two (2) service departments to the operating departments for the year would be? Select one of the following: a) $1,450,000 Ob) $254,000 c) $1,704,000 d) $850,000 8 8