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Support department cost allocation Hooligan Adventure Supply produces and solls vonous outdoor equipment. The Molding and Assembly production departinents are supported by the Personnel and Maintenance depsrtments. Personnel costs are allocated to the production departments based on the number of employees, and Maintenance costs are allocated based cn number of service calls. Informetion about theie departments is detailed in the following table: 1. Which of the following statements matches the sequential methed of cost alocations? a. Suppert departments are often allocated in order from lonest to the highest cout w th preference given to the departments that serve feve support departintits and have no occurats costeriveri. b. Support departments are often alocated in order frem heghest to loost cost with preference given to the departmants that serve many support departments and have acturate cost drivers. c. The sequential method only alocares costs to departments that have a high profit maryn. d. None of the above. Which separtment sheuld be alocated frst and identify the ieasen. Meatoin: a. It has the lowest isepartmental cost with no accurate cest diver b. It has the highest deoartmental cont with no accurate cost driver. c. It has the loweit departmental cost with an acturate cost driver. d. It has the highest departmentel coet with an atcurate cost driver. 3. Which gllocation method is usually the mont accurate? a. Oirect inethod: b. Reciprocal method. c. Sequential method, d. None of the aboit. What is a potential disadvantage of the reciprocal method? 3. It it the most complex method of coit allocobior. b. Both fixed and varable costs are allocated based on the computed cost base. c. It considars the support department cont as its onn department cost. d. Al the above