I Question 2 (adapted from Jan 2019 Question 1) Semicon Manufacturing Inc. produces two products, in departments IC20 and IC30 respectively. There are also three support departments. Stores, Maintenance and Administration. No inventories are held due to the perishable nature of the products. Direct costs of the products, which are variable, are identified to each department. Semicon Manufacturing Inc. allocates support department costs using the step-down method based on estimates of the usage in percentage, of the services provided as shown in table below. These are expressed as percentages and assumed to be reliable over the current capacity range. The general fixed factory overheads of $5,400,000, are apportioned based on floor space occupied. The company establishes costs based on budgeted volume and products are priced using a total cost plus model at a 20% markup from cost. Extracts of the 2021 Budgets are as follows: Annual volume (units) IC20 IC30 Budgeted production volume 168,000 84.000 Page 1 of 5IC20 IC30 Stores Maint Admin Material costs (EB) 2,200,000 1,050,000 150,000 150,000 - Other variable costs (3) 1,200,000 250,000 150,000 300,000 300,000 Dgpartlnental usage: Maintenance 60% 20% 20% - - Administration 40% 30% 20% 10% 0% Stores 70% 30% - - - Floor Space (sq. in.) 960 3'20 360 120 240 Required: (a) Discuss and explain the appropriate sequence of allocations by department without performing any calculations. (b) Ignoring your answer to part (a), calculate the total costs for IC20 and IC30 using the step- down method to allocate the support departments' costs, beginning with Administration, followed by Maintenance, and nally Stores. (c) Compute the budgeted unit selling price of products of IC20 and 1330 based on 20% of total cost plus markup that the company is currently using (round computations to 2 decimal places). (d) Explain whether the overhead costs would have been different if direct method had been used instead of step-down method