Chekley Manufacturing has two production departments (Machining and Assembly).

They have two service departments that provide services to each other and to production (Plant Maintenance and IT)

Chekley believes Plant Maintenance (PM) should be allocated based on square footage and

IT should be allocated based on computer hours.

Chekley allocates Plant Maintenance first when allocating using the step method.

You have the following additional information:

Total

manufacturing

costs

COSTS

Plant maintenance

350,000

$

Information technology

250,000

$

Machining

2,500,000

$

Assembly

2,000,000

$

5,100,000

$

Square Feet

Computer

hours

Plant maintenance

4,000.00

8,000.00

Information systems

2,000.00

4,000.00

Machining

12,000.00

24,000.00

Assembly

6,000.00

8,000.00

24,000.00

44,000.00

1. Using the reciprocal method, what is the formula for determining the total PM costs that should be allocated?PM = 350,000 + .2ITPM = 350,000 + .2(250,000)PM = 250,000 + .1ITPM = 350,000 + .1(250,000)2. Using the reciprocal method, what is the formula for determining the total IT costs that should be allocated?IT =350,000 + .1PMIT = 250,000 + .1PMIT = 250,000 + .2(350,000)IT =350,000 + .1(250,000)3.

3.Using the reciprocal method, how much in total will be allocated from PM to the other departments?

4. Using the reciprocal method, how much in total will be allocated from IT to the other departments?

I only need this two answers. thanks so much.