PLEASE HELP ME ON THIS QUESTION.

Question 4: Cost allocation [15 marks] Bio-care is a business that distributes and sells vitamins to wholesale and retail customers. The business is interested in working out how much the support departments are costing to try to improve their current operations as they move into an expansion phase. Based on the discussions with each of the departments, a matrix has been prepared that shows the interactions with each of the departments. Support Information Human Finance and Manufacturing Sellingand Departments technology Resources Accounting Distribution Human 20% resources [m-3 10% Information technology Finance and accounting The following information outlines the budgeted costs for each of the departments of the business for the upcoming year. Departments Department costs $130 000 $80 000 $150 000 $220 000 Sellin_ and distribution $170 000 1. Using the step-down allocation method, allocate the support department costs to the operations departments. Please show all your workings, inputs and calculations used. [13 marks] 2. Explain why the reciprocal method would be a better way to allocate departmental costs rather than the direct method. [2 marks]