Salado Inc. provides cleaning services through its Residential and Commercial divisions. Support services of the company are provided by Personnel and Administration areas. Costs of these two areas are allocated to the revenue producing departments. Personnel costs are allocated using number of employees; administration costs are allocated using direct department costs. The following 2013 budgeted information (presented in a benefits-provided ranking) is available:

Personnel Administration Residential Commericial
Direct costs $140,000 $180,000 $480,000 $800,000
Number of employees 12 30 72 48
Direct labor hours 60,000 90,000
Square feet deaned 450,000 570,000

Required:
a. Using the direct method, allocate the costs of Personnel and Administration to the Residential and Commercial divisions.
b. Using the step method, allocate the costs of Personnel and Administration to the Residential and Commercial divisions.
c. Salado prices jobs by the direct labor hour for Residential services and by the square foot cleaned for Commercial services. Compute the full cost of providing one direct labor hour of service for Residential and for one square foot cleaned for Commercial using (1) the direct method and (2) the step method. (Round cost per hour and cost per square foot to nearest cent.)