Service Department Cost Allocation - Direct Method

From Service Department Production Departments

HR Janitorial Assembly Finishing
Support department charges $90,000.00 $50,000.00    
HR (6:3) -$90,000.00   $60,000.00 $30,000.
Janitorial (40:55)   -$50,000.00 $21,053.00 $28,947.
Total $0.00 $0.00 $81,053.00 $58,947.
 
Solution b:
 
Service Department Cost Allocation - Step Method (Allocation of HR First)
From Service Department Production Departments
HR Janitorial Assembly Finishing
Direct charges of department $90,000.00 $50,000.00    
HR (1:6:3) -$90,000.00 $9,000.00 $54,000.00 $27,000.00
Janitorial (40:55)   -$59,000.00 $24,842.00 $34,158.00
Total $0.00 $0.00 $78,842.00 $61,158.00