Calculate operating costs and prepare a cost sheet for a service department.

Item	Cost ($)
Labor Costs	$50,000
Supplies	$20,000
Administrative Costs	$30,000
Overhead Allocation	$15,000

Requirements:

Calculate total operating costs for the service department.

Prepare a cost sheet detailing labor costs, supplies, administrative costs, and allocated overhead.

Discuss the importance of accurate cost allocation in service industry cost management.