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-orders	Mass-Prod
Budgeted cost in $				432.500	250.000	1.300.000	1.840.000	3.822.500
Support work last year
HR salaries in $					88.000	55.000	77.000	220.000
IT - Information technology (hours)				600		2.200	1.200

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 d) step-down method (10%) beginning with the support unit that provided most service to other support unit, e) reciprocal method (10%) using the simultaneous equation and f) give brief comments on which method is better than another (5%)