Question: Megalith Manufacturing divides its plant into two main production departments: Processing and Assembly. It also has three main service-providing departments, Heat, Maintenance and Steam, which provides services to the production departments and to each other. The costs of providing these services are allocated to departments on the bases indicated below: Total Cost Basis of allocation Heat R90 000 Floor area Maintenance R300 000 Hours worked Steam R240 000 Units consumed During the last year, the services provided were: To Heat Maintenance Steam Processing Assembly From Heat (m2) 5 000 5 000 40 000 50 000 Maintenance (hrs) 3 000 4 500 7 500 15 000 Steam (Units) 192 000 48 000 480 000 240 000 Allocate the costs of the service department to production departments using the direct method.