Question 1 The company has two support- Departments plant and Information and two Operating - Departments Machining & Assembly, and given the following data : Service Departments Production Departments Plant Information Machining Assembly $ 6,300,000 $ 1,452,150 $ 4,000,000 $ 2,000,000 Budget overhead costs before cost allocation Budgeted Labor hours 4,000 6,000 10,000 Percentage 20% 30% 50% Budgeted computer - hours 500 4,000 500 Percentage 10% 80% 10% Required: 1- Allocate Support- departments costs using the Direct method ( 10 marks) 2- Allocate The Support departments using Step-Down Method , Allocate Plant service first (10marks) Total : 20 marks