Columbine Incubator for Emerging Technologies nurtures fledgling businesses by providing tenants with a variety of services. Support services in descending order of use are Secretarial Services, Computer and Network Services, Fund Raising, Management Consulting, and Wet Lab Space. The service center costs are assigned to the centers and the tenant companies using the cost drivers that are listed below.

Required
1. Use the direct method of allocation to determine the three tenants’ support costs.
2. Use the step method of allocation to determine the three tenants’ support costs. Assign the service centers’ costs in descending order of use. (For example, assign the costs of Secretarial Services first and Computer and Network Services second.)
3. Manager Insight: Did each tenant’s total service costs differ depending on the allocation method? Did the total center costs of Columbine Incubator for Emerging Technologieschange?

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Service Center Cost $25,000 45,000 Cost Driver Secretarial Services Computer and Network Services Number of phone calls Number of computer Fund Raising Management Consulting Wet Lab Space 15,000 35,000 65,000 connections Dollars raised Number of tenants Percentage of reserved time Support Number of Number of Percentage Centers and Tenants Phone Computer Dollars Number of of Reserved Calls Connections Raised Tenants Time Secretarial Services Computer and Network Services Fund Raising Management Consulting Wet Lab Space Tenant: Clean 25 35 15 15 Air Tenant: 10 00,000 600,000 300,000 NuBones 45 35 40 Tenant: Genetic Fish 20 60