Problem 11-55 Cost Allocation: Step and Reciprocal Methods (LO 11-3, 4) Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Supplying Department Engineering Administration Maintenance Direct cost Engineering 0 15% 0 $48,000 Using Department Administration Maintenance 60% 0 0 10% 30% 0 $274,500 $45,000 Fabrication 20% 50% 15% $245,000 Assembly 20% 25% $80,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.). Allocated to: Fabrication Costs Assembly Engineering Administration Maintenance Total