Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows:

	Personnel	Legal	Eastern	Western
Employees	-	40	120	40
Hours	10,800	-	5,400	1,800
Department direct costs	$ 430,000	$ 290,000	$ 1,330,000	$ 920,000

Required:

Allocate the cost of the service departments to the operating divisions using the direct method.

Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal.

Allocate the cost of the service departments to the operating divisions using the reciprocal method.