Refer to the data given in the preceding problem. When Tampa Instrument Company established its service departments, the following long-run needs were anticipated.

Required:
Use the dual approach in conjunction with each of the following methods to allocate Tampa Instrument Company’s service department costs:
(1) Direct method and
(2) Step-downmethod.

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Long-Run Service Needs (in hours of service) Provider of Service User of Service HR Maintenance. CAD Machining Assembly. Total HR Maintenance CAD 500 1,000 3,500 5,000 10,000 800 4.800 2,400 8,000 4,800 1,200 6,000