CHAPTER 26 REVIEW, PRACTICE, AND APPLY Learning cives 10, 11 Problem 26-5A Cher Objective: To calculate allocations and record entries using the step method debt Factory O Control Cutting The Factory Overhead -- Factory Services account at the Bixby Corporation plant Dept 522.500 has a balance of $75,000. The Factory Overhead - Maintenance and Supply account has a balance of $37.500. Each amount is to be allocated among the three producing departments at the plant. Since the firm uses the step method, a share of the balance of the Factory Services Department Overhead account is to be first allocated to the Maintenance and Supply Department. Factory Services is allocated on the basis of square feet, and Maintenance and Supply is allocated on the basis of direct labor, as follows: Department Square Feet Direct Labor Maintenance and Supply 10.000 Cutting 30,000 $100.000 Molding 40.000 75,000 Finishing 20.000 25.000 Directions: Using the step method, prepare the journal entries to complete the allocation. Where needed, round allocations rates correct to one decimal place