Tebogo Swaran Productions has two support departments, Administration and Costuming, and two revenue departments, Digital and Broadcast. Administration allocates cost based on number of employees and Costuming allocates cost based on service hours. All costs are regarded as strictly variable. For April, the following is available:
	Support Departments			Revenue Departments
	Administration	Costuming		Digital	Broadcast
Direct Costs	$ 84,000	$ 35,000		$ 135,000	$ 75,000
Actual Activity:
Employees		6		12	6
Service Hours	192			576	192
REQUIRED:
1. If the company uses the direct method for allocating support department costs to revenue departments, what is the total cost allocated to Digital? What is the total cost allocated to Broadcast?
2. Assume the company uses the step method for allocating support department costs to revenue departments. The company begins with allocating the Administration Department cost first. What is the total cost allocated to Digital? What is the total cost allocated Broadcast?
3. Assume the company uses the algebraic (reciprocal) method for allocating support department costs to revenue departments. What are the equations that will determine the total cost of the support departments?