16-34. SUPPORT-DEPARTMENT COST ALLOCATIONS; SINGLE-DEPARTMENT COST POOLS; DIRECT, STEP- DOWN, AND RECIPROCAL METHODS. Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities; however, both manufacturing facilities share the same support services for information technology and human resources. The following shows costs (in thousands) for each manufacturing facility and for each support department. Variable Costs Information technology (IT) $ 1,200 Fixed Costs $ 4,000 Total Costs by Department $ 5,200 Human resources (HR) 800 2,000 2,800 Clothing 5,000 16,000 21,000 Shoes 6,000 9,000 15,000 Total costs $13,000 $31,000 $44,000 The total costs of the support departments (IT and HR) are allocated to the production departments (clothing and shoes) using a single rate based on the following: Information technology: Human resources: Number of IT labor-hours worked by department Number of employees supported by department Data on the quantity of the cost allocation bases by department are given as follows: