Candice Corporation produces reusable Christmas cards in two departments: Printing and Laminating. These departments are supported by two service departments: Personnel and Maintenance. Personnel use the number of employees as an allocation base and Maintenance uses machine hours. The expected level of activity for next quarter is shown below:

No. Of EmployeesMachine hours

Personnel40-

Maintenance60-

Printing12060, 000

Laminating18040, 000

Allocations are made in the order shown below. Budgeted costs for next quarter are P93, 000 for Personnel and P68, 000 for Maintenance.

Required:

Total amount of service cost that should be allocated to the printing and laminating department under

1.Direct method

2.Step method