Beankeepers LLP is a small firm which has two service departments, Finance and Human Resources, as well as three operating departments providing Audit, Corporate Secretarial and Taxation services to clients. Departmental costs for the Finance Department are allocated based on payroll costs while for Human Resources Department it is allocated based on number of employees. The following information has been gathered for the current year: Finance Human Resources Audit Corporate Secretarial Taxation Total Direct department costs $36,000 $18,000 $400,000 $700,000 $300,000 Department payroll costs $30,000 $16,000 $300,000 $450,000 $150,000 Number of employees 2 2 9 16 5 The Total Direct department costs are inclusive of the department payroll costs. Departmental pre-determined overhead rates are based on number of hours worked by employees. Each employee works 40 hours per week over a 50-week annual period. Required: (a) (i) Compute the total departmental costs for all three operating departments using the direct method of allocating the service department costs. (6 marks) (ii) Compute the departmental pre-determined overhead rates for each of the three departments based on the results computed in (i). (Provide your final answers to two decimal places of a dollar.) (3 marks) (b) (i) If the step down method is used, explain which service department should be allocated first. (3 marks) (ii) Calculate the total departmental costs for all three operating departments, using the step down method beginning with the Finance Department.