20 points 1 Problem 7-35 (Algo) Departmental Cost Allocation [LO 7-3] 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. Logen has the following labor hours devoted by each of the service departments to the other departments. Total Labor Tours Used by Departments Buck Pril Sourcing Operations Sourcing 10,000 Operations 21,000 The costs incurred in the plant are as follows: Departments Scurcing Departmental $225,000 bl 40,000 60,DDD Finishing 60,000 50,000 Operations Finishing Total Required: 305,000 450,000 295,000 $1,275,000 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 Coat Allocated Total Production Cont a. Direct Method Assembly $ 256,364 $ 706,384 Finishing 273,636 668,636 b. Step Method Assembly 251,818 711,818 Finishing 268,182 563,182 Reciprocal Method Assembly 244,900 694,966 Finishing 253,448 548,648 Check my work