Kay and Dee Manufacturing (K+D) has three business lines: 0 Repair and Overhead (R+O): Repair of truck transmissions. 0 Manufacturing: manufacturing of custom truck transmission parts 0 Chemical Treating: cleaning of old parts They also have three support departments. Major activities of each department are: ~ Human Resources (HR): Payroll, HR staff, employee services, Union/Management relations. Costs for this service department are allocated based on Headcount. 0 Facility: buildings, building maintenance and related building costs. Costs for this service department are allocated based on area occupied. Main Ofce (HQ): salaries for the President, VP, and Finance department. Costs for this service department are allocated based on Direct Whours. Other financial information is in Appendix A. REQUIRED: A. Briefly comment on the cost drivers for the support departments (jg. Do you think they are appropriate, or can you recommend something better? Briey explain your answer) B. Using the Direct Method, allocate overhead costs from the support departments to the business lines. C. Using the Step-down method, allocate overhead costs from the support departments to the business lines in the following order. 1\" Building 2nd HQ 3'5 HR D. Using the Reciprocal Method, allocate overhead costs from the support departments to the business lines