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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.
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