Problem: The Bayview Resort has three operating departments-the Convention Center, Food Services, and Guest Lodging-supported by three service departments-General Administration, Cost Accounting, and Laundry. For billing and management control purposes, the resort manager wants to calculate each operating department's direct costs plus its allocated share of service department costs. The company uses the step-down method of service department cost allocation beginning with the General Administration Department, followed by Cost Accounting, and Laundry. The allocation bases for each department are as follows: