Since the company has two operating units: Job-Order unit and Mass-Production unit, the management realised that there are two supporting units that significantly provide services to those operating units, they are Human Resources (HR) and Information Technology (IT). In preparing the budget for the year, the management decides to allocate the cost of support units to its operating units based on the service given, using last years data. This cost will consider as manufacturing overhead cost of the operating units. The cost of HR is allocated based on the salaries of the staff that provide services to other units. The cost of IT is allocated based on number of IT service hours. The Budgeted cost for the year and the support work given last year is presented below.

	Support Units		Operating units		TOTAL
	HR	IT	Job-order	Mass-prod
Budgeted cost	432500	250000	1300000	1840000	3,822,500
Support work last year					-
HR salaries	-	88000	55000	77000	220,000
IT hours	600	-	2200	1200	4,000

The management team considers two allocation methods to decide the best method for the company. Therefore, you are required to prepare the cost allocation schedule (use a tabular format) from support units to operating units using A) step-down method (10%) beginning with the support unit that provided most service to other support unit, B) reciprocal method (10%) using the simultaneous equation and C) give brief comments on which method is better than another (5%).