Costs to Allocate Service Dept. 1 Service Dept. 2 $480 $600 Allocation S1 S2 Production Accounting Check Service Dept. 1 Service Dept. 2 ? 0.2 0.6 ? 0.2 0.1 Marketing 0.1 02 0.1 0.1 1.0 1.0 .20 Service Dept. 1 Service Dept. 2 .40 .60 .20 .20 .10 .10 .10 .10 Production Dept. Accounting Dept. Marketing Dept. Required: 1) Allocate the dollars using the Direct Method 2) Allocate the dollars using the Step Method (allocate the 'correct' department first) 3) Allocate the dollars using the Reciprocal Method