Calculate the total overhead costs of the operating departments (Eastern and Western) after the supportdepartment costs of Engineering and Information Technology have been allocated using the following methods (showing your calculations in tables and footnotes, if needed):

a. direct method

b. step-down method (allocate Engineering first)

c. step-down method (allocate Information Technology first)

d. Which do you reccomend, why?

Support Departments Operating Departments Information Eastern Western Engineering Technology Department Department Total $300,000 $250,000 $650,000 $920,000 $2,120,000 Budgeted overhead costs before any interdepartment cost allocations Support work furnished: By Engineering Budgeted Engineering salaries Percentage By Information Technology Budgeted IT service hours Percentage $60,000 30% $50,000 25% $90,000 45% $200,000 100% 15% 1,500 50% 1,050 35% 3,000 100%