Balco Inc. has two production departments, Clear and Cream, and two service departments, Electricity and Water. Electricity renders $10\%$ of its services to Water, $30\%$ to Clear, and $60\%$ to Cream, while Water renders $50\%$ of its services to Electricity, $10\%$ to Clear, and $40\%$ to Cream. Total costs before allocation are $$200,000$ for Electricity and $$300,000$ for Water. You are the manager of the Cream department.

$1.$ Upper management has decided to use the step down method $($allocating Water first$).$ How much service department cost would be allocated to your department? $($SHOW COMPUTATIONS$)$

$2.$ Provide to upper management the equations you would use $($SET UP THE EQUATIONS BUT DO NOT SOLVE THEM$)$ if you were to utilize the reciprocal method.