Support-department cost allocations; direct, step-down, and reciprocal methods. Ballantine Corporation has two operating departments: Eastern Department and Western Department. Each of the operating departments uses the services of the company's two support departments: Engineering and Information Technology. Additionally, the Engineering and Information Technology departments use the services of each other. Budgeted data are as follows: Support Departments Operating Departments Information Eastern Western Engineering Technology Department Department Total $300,000 $250,000 $650,000 $920,000 S2,120,000 Budgeted overhead costs before any interdepartment cost allocations Support work furnished: By Engineering Budgeted Engineering salaries Percentage By Information Technology Budgeted IT service hours Percentage $60,000 30% $50,000 25% $90,000 45% $200,000 100% 450 15% 1,500 50% 1,050 35% 3,000 100% Required: 1. Using an Excel spreadsheet, complete a support department allocation to determine the total overhead costs of the operating departments (Eastern and Western) after the support- department costs of Engineering and Information Technology have been allocated using (a) the direct method, (b) the step-down method (allocate Engineering first), and (c) the reciprocal method? 2. Which method would you recommend that Ballantine Corporation use to allocate service- department costs? Why? Question: Total Budgeted Overhead of the Eastern and Western Operating Departments AFTER support department costs have been allocated using the (1) direct, (2) step-down, and (3) reciprocal methods. Round to the nearest Dollar. Using the DIRECT method: Eastern = Western = Using the Step-Down method: Eastern = Western = Using the reciprocal method: Eastern = Western =