Hoolloo manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant is highly automated and contains only two other support departments: (1) engineering and design (ED); and (2) information systems (IS). Hoolloo allocates support department costs according to estimated service use. Information for the year just ended was as follows.

	Support		Production
	ED	IS	Kangaroo Shaped	Platypus Shaped
Direct cost	$6,200	$9,500	$15,000	$22,000
Serviced used
ED	0	10%	50%	40%
IS	20%	0	20%	60%

Required: Using the information provided:

a) Determine the total cost of operations for each production department under the direct method.

b) Determine the total cost of operations for each production department under the step-down method.

c) Determine the total cost of operations for each production department under the reciprocal method.