Case 2 Quick Transportation operates local taxi service and bus transportation across a region. To provide superior service Quick operates its own service station. Maintaining schedules, bookings, and other administrative functions are provided by administrative services. Costs incurred over the last six months: Required: a. Allocate costs of administrative and service station using 1. The direct method of allocation. 2. The step-down method. Assume administrative is allocated first. 3. The reciprocal method of allocation. Administrative Service Station Taxi Bus transportation Costs $150,000 $725,000 350,000 600,000 Number of km 15,000 150,000 235,000 travelled Administrative 15% 45% 40% time