Barfield Corporation prepares business plans and marketing analyses for start$-$up companies in the Cleveland area. Barfield has been

very successful in recent years in providing effective service to a growing number of clients. The company provides its service from a

single office building in Cleveland and is organized into two main client$-$service groups: one for market research and the other for

financial analysis. The two groups have budgeted annual costs of $$530,000$ and $$800,000,$ respectively. In addition, Barfield has a

support staff that is organized into two main functions: one for clerical, facilities, and logistical support $($called the CFL group$)$ and

another for computer$-$related support. The CFL group has budgeted annual costs of $$108,000,$ while the annual costs of the computer

group are $$630,000.$

Tom Brady, CFO of Barfield, plans to prepare a departmental cost allocation for his four groups, and he assembles the following

information:

Percentage of estimated dollars of work and time by CFL group:

$10\%-$service to the computer group

$20\%-$service to market research

$70\%-$service to financial analysis

Percentage of estimated dollars of work and time by the computer group:

$20\%-$service to the CFL group

$40\%-$service to market research

$40\%-$service to financial analysis

Required:

Determine the total cost in the financial analysis and market research groups, after departmental allocation, using $($a$)$ the direct

method, $($b$)$ the step method when the sourcing department that provides the greatest percentage of services to other service

departments goes first, and $($c$)$ the reciprocal method. $($Do not round intermediate calculations. Round final answers to the nearest

dollar.$)$