supporting department: HR and GA, working department: PR, FM

HR.$100 000

GA.$ 60 000

P&R.$360 000

EM$450.000

	HR	GA
HR		0.2
GA	0.4
PR	0.3	0.6
FM	0.3	0.2

1. Allocate the service departments' costs to A&R and FM departments usingthe step-down method.

2. Allocate the service departments' costs to A&R and FM departments usingthe reciprocal method. 3. Why does dual-allocation improve the resulting cost allocation?What potential behavioural problem can result when the dual approach isused?