Salsa has two service departments, the IT Department and HR Department. Salsa also has two production departments, the Cutting department and the Mixing Department. The usage of the two service departments output for the year is as follows:

	Provider of Service
User of Service		IT	HR
IT		-	15 %
HR		5 %	-
Cutting		45 %	25 %
Mixing		50 %	60 %

The budgeted costs in the two service departments for the year as follows:

IT: $ 400,000

HR: $ 600,000

Use a.) direct method, b.) step-down method and c.) reciprocal services method to allocate the budgeted costs of the two service departments to production departments.