The managers of Stevens Inc. want to determine the most accurate allocation of support costs to operating departments. The following data has been collected:

	Support Departments
	IT Department	Food Services
Costs	$55,000	$35,000
Service provided to:
Food services	10%
IT department		15%
Production Dept. A	50%	40%
Production Dept. B	40%	45%

If the reciprocal method is used, the equation representing the total cost of the IT department is:

Question 5 options:

	$55,000
	$55,000 + 10% Food services costs
	$55,000 + 0.15 Food services costs
	$55,000 + ($35,000 x 15%)