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East Coast Link Ltd has two support department: Repairs and Engineering. These two departments directly support the two production departments: Moulding and Assembly, The usage

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East Coast Link Ltd has two support department: Repairs and Engineering. These two departments directly support the two production departments: Moulding and Assembly, The usage of the two support departments' output is as follows: The budgeted cost in the support department are as follows: (a) Allocate the budgeted costs of the two support departments (Repairs and Engineering) to the two manufacturing departments (Moulding and Assembly) using: i) Direct method ii) Reciprocal method (b) Compare and explain the main differences between the direct method and the reciprocal method. (c) Which method of cost allocation used in a) above, do you prefer? Explain why. (d) Explain why a manager may prefer that budgeted cost allocation rates be used, rather than actual cost allocation rates, to allocate costs to his or her department from another department

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