Question 2 Williston machining is small manufacturing firm with two production departments finishing and assembly. It is two service departments, maintenance and the cafeteria, serve both production departments. During the current period, the direct costs incurred in each department follow: Department Maintenance Cafeteria Finishing Assembly Total Direct cost $110,000 17,600 1,190,000 640,000 $1,957,600 Maintenance costs are allocated on the basis of repair hours, cafeteria costs are allocated on the basis of the number of employees in each department. For the current period, the following table summarizes the usage of service by other service by other service cost centers and other departments: Department Service department Maintenance (S1) (Repair-hours) Cafeteria (S2) (Employees) Maintenance 0 25 Cafeteria 3,000 0 Finishing (P1) 7,400 25 Assembly (P2) 4,600 50 Total 15,000 100 Required 1. Compute the service cost allocated to each production department using the step method. 2. Using the reciprocal method for service cost allocations, what are the total costs in each of the two production department, Finishing (P1) and Assembly (P2)?