Reference no: EM132560476

Spector Ticket Co. has two operating departments (Sports and Concerts) and two service centers (Administration and Custodial). Data for June are as follows:

                                     Administration                       Custodial

Costs                     $42,000                                $18,000

Services provided to:

Administration                 ---                                   20%

Custodial                           10%                                       ---

Sports                                50%                              30%

Concerts                             40%                          50%

                                            100%                         100%

Question 1: Allocate the service center costs to the operating departments using the step method. Begin with Administration.