Required:Allocate the two support departments costs to the two operating departments using the following methods:a) Direct method (6 marks)b) Step down method (allocate AS first) (7 marks)c) Step down method (allocate SS first) (7 marks)d) Reciprocal method (linear equations) (5 marks)

Ezprint Ltd provides management consulting services to government and corporate clients. Ezprint Ltd has two support departments; Administrative Services (AS) and Support Systems (SS) and two operating departments; Government Consulting (GOVT) and Corporate Consulting (CORP). For the rst quarter of 2021, Ezprint's cost records indicate the following: m AS GOVT CORP Total Budgeted overhead costs $700,000 $2,500,000 $8,856,000 $12,552,000 $24,608,000 before interdepartment cost allocations Support work supplied by - 25% 50% 100% AS budeted head count Support work supplied by 15% 35% 50% 100% SS (budgeted computer time)