Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded:

Supplying Department	Using Department
	Transactions	IT	Operations	Retail	Commercial
Transactions	0	0	0	70%	30%
IT	10%	0	30%	30%	30%
Operations	70%	0	0	10%	20%
Direct cost	$ 310,000	$ 730,000	$ 1,570,000	$ 3,770,000	$ 2,320,000

Required:

a. Allocate the service department costs to the two operating departments using the reciprocal method.