Fauci Medical Services annual budget for its two support (non-revenue producing) departments (Administration and legal) and three production (revenue producing) departments (Outpatient, Physical Therapy, and Occupational Therapy) is as follows:

		Annual Budget
		Administration	Legal	Out-Patient	Physical Therapy	Occupational Therapy
Direct Costs		$21,300	$16,800	$23,700	$75,200	$72,000
Number of Employees		30	40	60	40	30
Number of Cases		800	600	400	1,600	2,000

REQUIRED:

1. Prepare a cost schedule using the direct method
2. Prepare a cost schedule using the stepdown method
3. How was the order of allocation determined? Does the order make a difference?