Logan Products has two production departments-assembly and finishing. These are supported by
two service departments-sourcing (ourchasing and handiling of materials and human resources)
and operations (work scheduling. supervision, and inspection). Logon has the following labor
hours devoted by each of the service departments to the other departments. The costs incurred in
the plant are as follows: Required: 1. What are the costs allocated to the two production
departments using (o) 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? 2. 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.)