1. Allocate the two support departments costs to the two operating departments using the following methods:

a. Direct method

b. Step-down method (allocate MR first)

c. Step-down method (allocate US first)

d. The Algebraic/reciprocal method.

Caris Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Caris's cost records indicate the following