Human Janitorial f. Service department costing Top2Toe is a boutique store that sells high-fashion hats and shoes in the downtown section of the city. The company's controller assesses the manager of each department on their ability to control costs. As such, he wants to properly allocate the cost of their two major service departments: Janitorial and Human resources to their two sales departments, Shoes and Hats. Note that Janitorial and Human resources also provide services to each other. Janitorial costs are allocated by square feet and Human resources costs are allocated by number of employees. Data for August are provided below. Shoes Hats August data resources Budgeted costs $13,800 $6,400 $40,000 $31,500 Actual costs $14,300 $5,800 $52,000 $29,500 Actual square feet of 612 department 1,200 1,088 1,700 Actual number of employees 10 21 15 24 Currently, the controller uses the Step method to allocate service department costs to operating departments. Human resources is allocated first, then Janitorial. Required 1. Calculate the costs of the Janitorial department that would be allocated to the Shoes Department for August using the appropriate figures and the controller's current method of service department cost allocation. (3 marks) il. The controller is aware of the direct and reciprocal methods and wants to know if he should use one of those methods instead of the step method. You do a quick analysis of both methods which results in the following allocations: (2 marks) Total cost of service department costs allocated using: Shoes Hats Direct method $7,805 $12,394 Reciprocal method $7,825 $12,375 Explain which method should be used and why. (2 marks)