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Problems 1. Hoolloo manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant

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Problems 1. Hoolloo manufactures two types of piggy banks, a kangaroo-shaped piggy bank and a platypus-shaped piggy bank, in two separate production departments. The plant is highly automated and contains only two other support departments: (1) engineering and design (ED); and (2) information systems (IS). Hoolloo allocates support department costs according to estimated service use. Information for the year just ended was as follows. Support Production ED IS Kangaroo-s haped Platypus-shaped Direct costs $6,200 $9,500 $15,000 $22,000 Service used ED 0 10% 50% 40% IS 20% 0 20% 60% Required: Using the information provided: a) Determine the total cost of operations for each production department under the direct method. b) Determine the total cost of operations for each production department under the step-down method. c) Determine the total cost of operations for each production department under the reciprocal method

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