Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department.

The following data appear in the company records for the current period:

	IT	HR	Publishing	Binding
IT tickets	0	1,400	1,400	4,200
Employees	16	0	24	40
Department direct costs	$ 153,000	$ 263,800	$ 430,000	$ 390,000

Required:

Use the step method to allocate the service costs, using the following:

The order of allocation starts with IT.

The order of allocation starts with HR.

Use the step method to allocate the service costs, using the following: The order of allocation starts with IT. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Complete this question by entering your answers in the tabs below. Use the step method to allocate the service costs, using the following: The order of allocation starts with HR. Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations