QUESTION 2 30 marks Kanahooka Ltd is a company that is selling its product online to the public. It has two operating departments that are selling to customers and are categorised into: Company-customers and Individual customers. In addition, Kanahooka Ltd also has two support departments: Human Resources (HR) and Information Technology (IT). Each of the operating departments conducts online sales operations independently. Kanahooka Ltd uses number of employees to allocate HR costs and budgeted processing time to allocate IT costs. The following data are available for May 2017. Support Departments Operating Departments Individual $4,000,000 2,400 36 HR IT $1,200,000$3,500,000$5,000,000 Company Budgeted costs Budgeted processing time (in min) Number of employees 1,600 9 1,000 15 Required (show your working): Allocate the costs from support departments to operating departments and determine the total budgeted cost of each operating department after the cost has been allocated from the support departments using the following method Direct method Step-down method if the support department with the highest dollar amount is allocated first (a) (b) (10 marks) (10 marks) (c) Reciprocal method (10 marks)