Delta Manufacturing Company has two Service Departments$-$Custodial Services and Maintenance$-$and three Production Departments$-$Cutting, Milling, and Assembly. Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours. Budgeted operating data for the year just completed follow:

Service Departments Production Departments

Custodial Services Maintenance Cutting Milling Assembly

Budgeted costs before allocation $$20,000$ $$8,000$ $$90,000$ $$50,000$ $$100,000$

Square metres $1,00010,5005,00017,00013,000$

Labour$-$hours $4,2208,0008,000$

Required:

a$)$ Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, rounding all dollar amounts to the nearest whole dollar.

b$)$ Prepare a schedule to allocate Service Department costs to the Production Departments by the step$-$down method, allocating Custodial Services first, and rounding all amounts to the nearest whole dollar.