Caris Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Caris's cost records indicate the following:

PDF Set Microsoft Edge as the default application for reading PDF files? Set as default X ACCT 3039 Advanced Managerial Accounting Graded Activity 1 Sem # 2 2223 Individual 40% Problem Sets Land 2 Problem 1 Caris Company is a manufacturer with two production departments (Machining and Assembly) as well as two support departments (Materials Requisitions and Utility Services). For the last quarter of 2020, Caris's cost records indicate the following: SUPPORT PRODUCTION Materials Utility Machining Assembly Total Requisitions| Services (MR) (US) Budgeted $400,000 $2,000,000 59,456,000 $13,458.000 | $25.314,000 overhead costs before any inter- department cost allocations Support work 25% 40% 35% 100% supplied by MR (Number of requisitions) Support work 10% 309 60% 100% supplied by US (Power costs) Required: 1. Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method (5 Marks) b. Step-down method (allocate MR first) (5 Marks) c. Step-down method (allocate US first) (5 Marks) d. The Algebraic/reciprocal method. (10 Marks)