QUESTION TWO (13 marks 15 minutes) SteamCo Corporation has two support departments, Administration and Accounting and two operating departments, North and South. Administration costs are allocated on the basis of employees and Accounting costs are allocated on the basis of number of transactions. Operations for November are as follows: ADMINISTRATION ACCOUNTING NORTH SOUTH Budgeted Costs $360,000 $100,000 $261,000 $689,000 Number of employees 12 6 18 Processing time (mins.) 1,000 20 500 4,500 Space occupied 1,450 300 875 1,500 Transactions 35,000 15,000 10,000 40,000 30 REQUIRED: 1. Rank the service departments based on the highest percentage of their services provided to the other departments and use this ranking to allocate the service departments' costs to the operating departments based on the step method. (Hint: When using the step method you should be allocating Accounting first). (3 marks for showing calculation for Accounting being first)