Lifetime Insurance Company has two supporting departments (actuarial and premium), and two production departments (advertising and sales). Data from operations for the current year are as follows: Actuarial Manufacturing overhead costs Support provided by Actuarial $350,000 Premium $172,000 Advertising $225,000 Sales $125,000 20% 30% 50% Support provided by Premium 14% 45% 41% Required (A) Allocate the two support departments' costs to the two operating departments using the direct method (round to the nearest dollar). (B) Allocate the two support departments' costs to the two operating departments using the step down with the Actuarial department allocating first (round to the nearest dollar). (C) Allocate the two support departments' costs to the two operating departments using the reciprocal method (round to the nearest dollar). (D) Discuss each of the three allocation methods. Which method do you recommend the company should use? Why?