Question 4 Total 25 marks Gambino Ltd is a business consultant firm that provides its service to its clients. Gambino Ltd has two support departments: IT Support (IT) and Admin Support (Admin) department. In addition, Gambino has two operation departments namely: Retail sector and Manufacturing sector. For the next quarter, the budgeted cost and the percentage of work of the support department used by the other departments is available below: Budgeted costs $ Support work supplied by IT Support work supplied by Admin Support Department Operation Department IT Admin Retail Manufacturing Total 1,200,000 1,552,500 7,500,000 8,000,000 18,200,000 25% 40% 35% 100% 10% 30% 60% 100% Required (show your workings): (a) 6 marks Using the direct method, determine the amount of support department costs that will be allocated to the two operation departments (b) 7 marks Using the step-down method, determine the amount of support department costs that will be allocated to the two operation departments if the Admin department with the highest amount is allocated first. (c) 12 marks Using the reciprocal method of linear equations, determine the amount of support department costs that will be allocated to the two operation departments