big firm has two support departments:the human resources department and the computing department. Big Firm also has two departments that service clients directly: the taxation division and the audit division. The usage of the two support departments output for the year just ended was as follows

QUESTION 10 (4 Marks - Suggested time approx. 15 minutes) Bigfirm has two support departments: the Human Resources Department and the Computing Department. Bigfirm also has two departments that service clients directly: the Taxation division and the as follows: Audit division. The usage of the two support departments' output (in hours) for the year just ended was User of service Provider of Service Human Resources Human Resources Computing Computing 240,000 Taxation Div. 4,000 Audit Div. 4,000 720,000 4,000 240,000 12,000 1,200,000 The Budgeted costs in the two support departments for the year just ended were: Human Resources $180,000 Computing $300,000 Calculations to three decimal places Required: a) Use the direct method of cost allocation to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. (1 marks - suggested time approx. 4 minutes) b) Use the step down method to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. Bigfirm allocates the costs of the Computing Department first. . (1 marks - suggested time approx. 4 minutes) c) Use the reciprocal services method to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. (2 marks - suggested time approx. 7 minutes)