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	$ 430,000	$ 850,000	$ 1,690,000	$ 3,890,000	$ 2,440,000

Required:

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

PLEASE ANSWER ASAP BY 10 AM TOMORROW

PLEASE MAKE SURE THE ANSWERS ARE CORRECT

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