1. Wild-East Company has two support departments: materials-handling (MH) department and power- generating (PG) department. An analysis of the work done by departments A and B in a typical period follows: Used by Supplied by MH PG Assembly Testing MH (DL hours) 200 500 300 PG (KW Hours) 1,000 200 800 The work done in department MH is measured by the direct labor-hours of materials-handling time. The work done in department PG is measured by the kilowatt-hours of power. The budgeted costs of the support departments for the coming year are as follows: Support Dept. Costs Var. Ind. Labor and Ind. Mat. Cost Supervision Depreciation Total MH $70,000 10,000 20,000 $100,000 PG $10,000 10,000 20,000 $40,000 The budgeted costs of the operating departments for the coming year are $1,500,000 for Assembly and $800,000 for Testing. Required: Please allocate the costs of support departments MH and PG to Assembly and Testing departments using; (a) the step-down method (10 pts) (b) the reciprocal method (15 pts)