ens Corporation has three service departments (Repairs, HR, and IT) and two production departments (M1 and M2). The following usage data for each of the service departments for the previous period follow.

	Repairs			HR			IT			M1			M2
Repairs					0	%		0	%		40	%		60	%
HR		10	%					20	%		35	%		35	%
IT		0	%		10	%					20	%		70	%

The direct costs of the service departments in the previous period were $20,000 for Repairs, $39,600 for HR, and $45,000 for IT.

Required

Use the reciprocal method to allocate the service department costs to the production departments. (Matrix Algebra is not required).