Billy Stone, Inc. budgets the following amounts for its Buildings & Grounds andComputer Services Departments in servicing each other and the two manufacturingdivisions of Signs and Mailers:

Supplied By Building & Grounds Computer Services Signs Mailers

Buildings & Grounds 0.20 0.60 0.20

Computer Services 0.15 0.30 0.55

Actual cost data for each support department are:

Fixed

Buildings & Grounds $ 50,000

Computer Services $100,000

Allocate costs from the service departments using:

a. the direct allocation method.

b. the step-down aloocation method( begin with Building and Grounds).

c. the reciprocal allocation method.