Following table shows allocated support department costs to operating departments using four methods of support department costs allocation: Government Consulting Corporate Consulting Direct method $1 120 000 $1 880 000 Step-down (AS allocated first) $1 090 000 $1 910 000 Step-down (IS allocated first) $1 168 000 $1 832 000 Reciprocal method $1 129 231 $1 870 769 Required: (a) Which method of support department cost allocation will be favoured by the manager of Government Consulting Department? Briefly explain why. (3 marks) (b) Which method of support department cost allocation will be favoured by the manager of Corporate Consulting Department? Briefly explain why. (3 marks) (c) As the management accountant of MZM Ltd. which method of support department costs allocation you will adopt to resolve disputes between Government and Corporate Consulting departments' managers with respect to their preferred method of support department cost allocation. Briefly discuss by describing the merits and demerits of each of the support department cost allocation method. (6 marks) Edit View Insert Format Tools Table