Western Services has three service departments: Information Systems $($IS$),$ Personnel, and Administration. There are two operating departments: Residential and Commercial. A summary of costs and other data for each department prior to allocation of service department costs for the latest period follows:

$$ISPersonnelAdministrationResidentialCommercialNumber of IS service tickets$1702001551,410940$Number of employees$115120107138162$Square footage occupied$3,9008,0003,80016,10069,500$

The costs of the service departments and the allocation basis for each department follow.

DepartmentDirect CostAllocation BaseInformation Systems $($IS$)$$ $33,000$IS service ticketsPersonnel$40,000$EmployeesAdministration$36,700$Square footage occupied

Required:

Assume that the company allocates service department costs to production departments using the direct method. What amount of Information Systems $($IS$)$ Department costs will be allocated to the Commercial Department?

Assume the same method of allocation as in requirement $($a$).$ What amount of Personnel Department costs is allocated to the Residential Department?

Assuming that the company allocates service department costs to other departments using the step method $($starting with Administration and then IS$),$ what amount of Administration Department costs is allocated to the IS Department?

Assume the same method of allocation as in requirement $($c$).$ What amount of IS Department costs is allocated to Administration?

Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows:

Baldwin Enterprises estimates that the cost structure in its operations is as follows:

Required:

a$.$ If Baldwin outsources the Legal Department, what is the maximum it can pay an outside vendor without increasing total costs?

b$.$ If Baldwin outsources the Personnel Department, what is the maximum it can pay an outside vendor without increasing total costs?

c$.$ If Baldwin outsources both the Personnel and the Legal Departments, what is the maximum it can pay an outside vendor without increasing total costs?

Complete this question by entering your answers in the tabs below.

If Baldwin outsources the Legal Department, what is the maximum it can pay an outside vendor without increasing total costs?

Note: Do not round intermediate calculations.