Logan Products has two production departmentsassembly and finishing. These are supported by two service departmentssourcing purchasing and handling of materials and human resources and operations work scheduling, supervision, and inspection Logan has the following labor hours devoted by each of the service departments to the other departments.
Total Labor Hours Used by Departments
Sourcing Operations Assembly Finishing
Sourcing
Operations
The costs incurred in the plant are as follows:
Departments Departmental Costs
Sourcing $
Operations
Assembly
Finishing
Total $
Required:
What are the costs allocated to the two production departments using a the direct method, b the step method, when the sourcing department that provides the greatest percentage of services to other service departments goes first, and c the reciprocal method?
What are the total costs in the production departments after allocation?
For all requirements, do not round intermediate calculations. Round your final answers to nearest whole dollar amount.
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