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CoursHeroTranscribedText: Logan Products has two production departments-assembly and finishing. These are supported by two service departments-sourcing (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 20,000 40, 000 60,000 Operations 10,000 60,000 50,000 The costs incurred in the plant are as follows: Departmental Departments Costs Sourcing $ 198,000 Operations 260,000 Assembly 432,000 Finishing 277,000 Total $ 1, 167,000 Required: 1. 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? 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.) Total Service Department Cost Total Production Allocated Cost a. Direct Method Assembly FinishingTotal Service Department Cost Total Production Allocated Cost a. Direct Method Assembly Finishing b. Step Method Assembly Finishing C. Reciprocal Method Assembly Finishing

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