Please explain how to use direct method. also do not show exampls with ratios. Thank you!

9) Jerome Company has two service departments, Maintenance and Human Resources. Jerome Company also has two production departments, Mixing and Finishing. Maintenance costs are allocated based on square footage while Human Resource costs are allocated based on number of employees. The following information has been gathered for the current year:

Human

Maintenance Resources Mixing Finishing

Direct costs $126,000 $84,000 $105,000 $175,000

Square footage 800 400 1,600 1,200

Number of employees 8 12 24 32

If the direct method is used to allocate service department costs, then the total cost of the Finishing Department after allocation would be ________.

A) $48,000

B) $102,000

C) $175,000

D) $277,000 this is the correct answer. Please explain why.

Also, please provide formulas for direct method, and step-down-method.