Harry Dorffman Owns and Operates Harry's Abstracting Service

Short Answer

Harry Dorffman owns and operates Harry's Abstracting Service.Harry's two revenue generating operations (Abstracting Services and Closing Services)are supported by two service departments: Clerical and Custodial.Costs in the service departments are allocated in the following order using the designated allocation bases.
Clerical: number of transactions processed
Custodial: square footage of space occupied
Average and expected activity levels for next month are as follows:
Required:
Use the direct method to allocate the service department costs to the revenue generating departments.Provide the total costs for the revenue departments.