Explain step by step with the computation

E$7-27.$ Interdepartmental Services: Step Method

Assume that Wilson's, a department store in Massachusetts, allocates the costs of the Personnel and

Payroll departments to three retail sales departments, Housewares, Clothing, and Toys. In addition to

providing services to the operating departments, Personnel and Payroll provide services to each other.

Wilson's allocates Personnel Department costs on the basis of the number of employees and Payroll

Department costs on the basis of gross payroll. Cost and allocation information for June is as follows.

REQUIRED

a$.$ Determine the percentage of total Personnel Department services that was provided to the Pay$-$

roll Department.

b$.$ Determine the percentage of total Payroll Department services that was provided to the Person$-$

nel Department.

c$.$ Prepare a schedule showing Personnel Department and Payroll Department cost allocations to

the operating departments, assuming Wilson's uses the step method. $($Round calculations to the

nearest dollar.$)$