Reference no: EM132587750

Apple has 2 service departments (accounting and maintenance) and 2 operating departments (lawnmower and weed wacker). Apple's management has decided to allocate accounting costs on the basis of the number of employees, and maintenance costs on the basis of service hours used. below is the data concerning apple's current operations

                                         accounting                 maintenance                  lawnmower            weed wacker

Overhead costs                     $340,000                   $510,000                    $787,500                $612,500

# of employees                                                         10                             40                      50

service hours                            20                                                          500                      480

Question 1: Allocate the service departments costs using direct method.