5. EFG Corporation operates a service department that provides support to two production departments, Department X and Department Y. The service department incurred costs of $80,000 for the month of August. Department X occupied 60% of the service department's capacity, while Department Y occupied the remaining 40%. Allocate the service department costs to Department X and Department Y using the step-down method, and compare the results with those obtained using the direct method. Discuss the advantages and disadvantages of each allocation method and recommend the most appropriate method for EFG Corporation.