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Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the

Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of June follow:

Compute the allocation of service department costs to producing departments using the direct method.(Do not round intermediate calculations.)

Proportion of Services Used by
Department Direct Costs Maintenance Cafeteria Building A Building B
Building A $ 550,000
Building B 344,000
Maintenance 310,000

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