Salvador Apparel Company in Barcelona, Spain, has three production departments and two service departments. The overhead-per-month analysis sheet provides the following totals of the overheads analyzed to production and service departments:

Departments Overheads

Mens wear production department 48,000

Womens wear production department 42,000

Childrens wear production department 30,000

Marketing service department 14,040

Delivery service department 18,000

Total: 152,040

The expenses of the service departments are apportioned as follows:

Production departments Service departments

Mens Womens Childrens Marketing Delivery

Marketing 20% 40% 30% 10%

Delivery 40% 20% 20% 20%

Instruction

Use following methods to allocate service departments costs:

1. Direct allocation (20%)
2. Step-down allocation (30%)
3. Reciprocal allocation (50%)