Electro Ltd manufactures semi-conductors for the computer industry. The firm has two operating departments: the machining department and the assembly department. The firm also has two support departments: materials procurement and general factory support. The usage of these two support departments' output for 2019 was as follows: Support departments Operating departments General Materials Factory Machining Assembly User of Services Procurement Support Department Department Budgeted manufacturing overhead costs before an interdepartment cost allocations 900.000 750,000 1,000 000 4,000,000 Support work supplied by: Materials Procurement 25% 45% 30% General Factory Support 15% 0% 50% 35% REQUIRED a) Use the direct method to allocate the budgeted costs of the Materials Procurement Department and General Factory Support Department to the Machine Centre and Assembly Centre (4 Marks) AND b) Use the step down method to allocate budgeted costs of the Materials Procurement Department and General Factory Support Department to the Machine Centre and Assembly Centre. (8 Marks) Question Two continued overleaf PTO Page 3 of 6 BMAN 21040 Question Two continued AND c) Use the reciprocal method to allocate the budgeted costs of the Materials Procurement Department and General Factory Support Department to the Machining Department and Assembly Department. (12 Marks) AND d) Compare the costs allocated to the two operating departments based on the three methods in 2-c and discuss which method may be the most appropriate one for the company? Marles