Step-down and reciprocal methods of allocation Refer to the data in Problem 21-22, Pal- aska Company. Assume that the costs of the two service departments. Accounting and Maintenance, are allocated on the basis of number of accounting hours and maintenance hours, respectively.

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REQUIRED a. Determine the overhead rates for the producing departments using the step-down method in allocating service department costs. The service department that provides the highest percent- age service to the other service department is allocated first. b. Determine the overhead rates for the producing departments after the service department costs have been allocated using the reciprocal method of allocation.