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Samsung has two operating/user departments, Gen 4 & Gen 5. The two support departments are Information Technology (IT) & Product Development (PD). The costs incurred

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Samsung has two operating/user departments, Gen 4 & Gen 5. The two support departments are Information Technology (IT) & Product Development (PD). The costs incurred in each of these departments are as follows: Gen 4 $300,000 Gen 5 $480,000 IT $60,000 PD $150,000 The actual level of support is as follows: Supplied by Used by IT PD Gen 4 Gen 5 IT 10% 30% 60% PD 20% 25% 55% Determine the cost allocated to: 1. Gen 4 using the direct method 2. Gen 5 using the direct method 3. Gen 4 using the step-down method (allocating IT first) 4. Gen 4 using the step-down method (allocating PD first) 5. Gen 4 using the reciprocal method 6. Gen 5 using the reciprocal method

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