Longworth Manufacturing has two producing departments, machining and assembly, and two service departments, personnel, and custodial. The company’s budget for April 20X1 is as follows: Service Departments Production DepartmentsPersonnel Custodial Machining AssemblyDirect department costs $45,000 $70,000 $600,000 $800,000Square feet 2,000 1,000 10,000 25,000Number of employees 15 30 200 250Longworth allocates personnel costs on the basis of a number of employees and custodial costs on the basis of square feet.
1. Allocate personnel and custodial costs to the producing departments using the direct method.
2. Allocate personnel and custodial costs to the producing departments using the step-down method. Allocate personnel costs first.

Walmart and target are the only stores in a remote town that currently stock and sell the playstation 5 video game console. managers at both stores are simultaneously deciding whether to charge a price of $1,000 or $1,500 for each console. if both stores charge $1,000, they earn a profit of $100,000 each. if both stores charge $1,500, they earn a profit of $200,000 each. if one store charges $1,000 and the other store charges $1,500, the store that charges $1,000 earns a profit of $250,000 and the firm that charges $1,500 earns a profit of $50,000. if walmart and target they can both charge $1,500 and earn the highest combined profit available. engage in spirited price competition collude with each other privately undercut each other after making an agreement compete with each other only with regard to price and not quantity compete with each other only with regard to quantity and not price