Sportiz Company manufactures sports shoes for the local market. The company has two (2) production departments: Cutting and Stitching and two (2) service departments: Information Technology (IT) and Human Resource (HR). The Cutting department costs are allocated based on machine hour and the Stitching department costs are based on direct labor hour. The IT department costs are allocated based on computer hours and HR department costs are based on number of employees. The company incurs direct material cost of RM14,600 and direct labor cost of RM11,500 to produce 3,200 units of shoes. Details for the production and service departments are given as follows: Overhead Computer Number of Machine Direct cost (RM) hour employee hour labor hour IT 20,000 2,000 10 HR 5,000 500 5 Cutting 150,000 1,200 15 5,000 400 Stitching 85,000 800 25 300 2,500 Calculate the overhead rate for each production department. Allocate the two service departments costs to the two production departments using the following method: a) Direct method b) Step-down method (6 marks) (7 marks) c) Reciprocal method (12 marks)