EPPA2813 e Corpuration uses the step-down method to allocate service deparime eraing deparrments. The company has two service departments clies and tva operating departments, Assembly and Finishing Administration and perating Department stration Facilities Assembly Finishing 4.000 Serriue Department O dmin- S78. I 80 5.0002.000 S156.010 S560.070 21.000 16.000 590 Deoartmentai unsts 38.000 7000 1.000 dmimistration Depurtment costs are allocated on the basis of employee time and Facilities Lepaniment costs are allecated on the basis of space occupied. a Alocane the service department costs to the operating departments using the direct (8 marks) b Alocare the service department costs to the operating departments using the step-down costs are allocated first and Facilities Department method. Administration Department costs are allocated second. (12 marks) e) Discuss the advantage of using step-down method in comparison with direct method. (5 marks) QUESTION 3 (25 MARKS) Darter Company manufactures two products, Product F and Product G. The company expects units of Product F and 6.000 units of Product G during the current ses activity-based costing to compute unit product costs for external he cst drivers for machine setups is number of setups; for purchase orders is number reportsfr general factory is machine hors. Data relating to the company's three activity of orders; and for general f cost pools are given below for the current year Estimated Overhead Activity Cost Pool Estimated Activity Costs Product F ProductG Machine setups... Purchase orders $10.400 $88.440 S65.340 8o 810 General factory.... 180 1.200 3.600 260 2.010 5,940 S0U1 REG