4 3 MF Ltd. has 2 service departments (Accounting and Maintenance) and 2 operating departments Lawnmower and Weeddar) ME's management has decided to allocate Accounting costs on the basis of the number of employees, 5 and Maintenance costs on the basis of the service hours used. Below is data concerning ME's current operations o 7 Accounting Maintenance Lawnmower Weedwacker Overhead costs $240,000 $310,000 $787.500 S612.500 # Employees 5 30 45 Service hours 20 480 500 Required: Allocate the service departments costs to the two operating departments using step-down method. he department with higher overhead cost would be ranked first. Show your detailed work. (6 marks) 25 27 2. Allocate the service departments in de methodem 29 30 31 32 33 14 35 36 37 38 59 3. Formulate the Maintenance and Accounting costs under the Reciprocal method. What is the total amount of Accounting costs to be allocata (Note: No requirement to do the cost allocation to the operating departments)