(a) ReCola manufactures regular cola and cherry cola drinks using a joint production process. The monthly cost of producing 9,000 litres of regular cola and 6,000 litres of cherry cola till the split off point is $7,500. The sales value of regular cola at the split off is $0.95 per litres while Cherry cola requires a further processing cost of $900 per 6,000 litres before it can be sold as cherry cola at $1.30 per litre. If ReCola uses the net realizable value method to allocate joint costs, what is the cost to produce each product? (Give you answer to the nearest dollar). (b)UA Bank ("UA") has two support services departments: Computing and Human Resources; and two operating departments: Loans and Deposits that deal directly with the bank's customers. (i) UA uses the step down method to allocate support services costs based on the table below which contains usage and cost information. Explain which support services department you would choose to allocate first.

(ii) Ignore your answer in part (i). Compute the support services costs allocated to each operating department by allocating the Computing department costs first. ------------------------------------------------------[Provider of service] ------------------------------------[Computing department] ----------- [Human Resource department] Budgeted annual costs............................$400,000....................................$250,000 User of service Computing .................................................0%..............................................40% Human Resource........................................40%............................................0% Loans .........................................................20%............................................30% Deposits......................................................40%............................................30%