4. Service department cost allocation The following overhead costs were both budgeted and incurred in Seattle Ltd during October: Indirect wages Indirect materials Indirect expenses $ $ $ Allocated to Production department 1 15,000 3,000 Production department 2 10,000 6,000 Production department 3 20,000 4,000 Service department A 5,000 2,000 Service department B 10,000 3,000 Not allocated 22,000 3,000 55,000 The unallocated costs should be apportioned to the five departments on the following basis: Production Service 1 2 3 A B 35% 20% 30% 5% 10%Service Overhead costs, not allocated departments' time is spent looking after other departments as follows: Department A 25% 20% 40% 15% Department B 15% 35% 30% 20% Budgeted production hours (000s) 20 40 60 Required: (a) Prepare a summary of overhead allocations to production departments using: (i) a direct apportionment method (once the $80,000 has been apportioned to allfive departments) (ii) a stepped method (under the same conditions as (i)) (iii) a reciprocal method