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 ED IS $6,200 $9,500 Production Kangaroo-shaped Platypus-shaped $15,000 $22,000 Direct costs Service used ED IS 0 20% 10% 0 50% 20% 40% 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