5 2. Assembly Inc. has two support departments, Supplies and Administration. Supplies Department costs of $1,300,000 are allocated on the basis of square feet of completed project. Administration Department costs of $2,200,000 are allocated based on the number of employees in cach department. The costs of the 2 completed projects, Residential apartment complex (RAC) and Office building (OB) are $3,600,000 and $4,800,000, respectively. RAC is sold for $6,200,000 & OB is sold for $9,300,000 (round to one decimal place) Operating Departments Support Departments Supplies Administration Department Department $1,300,000 $2,200,000 2,000 12 Costs Square feet Number of employees RAC OB $3,600,000 $4,800,000 30,0000 18,000 40 68 Determine the costs allocated to RAC & OB: a. Using the step-down method (allocating the Supplies Department first) b. Using the reciprocal method