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Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production...

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Accounting

Memorial Services, Incorporated (MSI) has three service departments (IT, Accounting, and HR) and two production departments (West
and East). The usage data for each of the service departments for the previous period follow:
The direct costs of the service departments in the previous period were $87,000 for IT, $100,000 for Accounting, and $115,000 for HR.
Required:
Use the step method to allocate the service department costs to the two production departments. Allocate HR costs first, followed by
IT, and then Accounting.
Note: Amounts to be deducted should be indicated by a minus sign.
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