chapter7 probiem-3 Chegg Study TEXTBOOK SOLUTIONS EXPERT O&A D-Q study with Textbook Solutions on-the-go E GET CHEGG STU ome study / business / accounting / accounting solutions manuals / cost management a strategic emphasis /7th edition Cost Management: A Strategic Emphasis |(7th Edition) E Chapter 7, Problem 35P Show all steps. OMD Bookmark Problem Departmental Cost Allocation Logan Products has two production departments-assembly and finishing. These are supported by two service departments -sourcing (purchasing and handling of raw materials and human resources) and operations (work scheduling, supervision, and inspection). Logan has the following labor hours devoted by each of the service departments to the other departments. Total Labor Hours Used by Departments Sourcing Operations Assembly Finishing 20,000 40,000 0,000 50,000 0,000 Sourcing Operations 10,000 The costs incurred in the plant are as follows Departmental Costs $165,000 205,000 10,000 255,000 1,035,000 Departments Sourcing Operations Assembly Finishing Total Required Use 4 or more decral places (e g.. 33 3333%) in your calculations. 1. What are the costs allocated to the two production departments using (a) the direct method (b) the step method (with the sourcing department going first), and (C) the reciprocal method? 2. What are the total costs in the production departments after allocation