Vitamins are distributed and sold by Active Energy to both wholesale and retail consumers. As the company enters an expansion period, it is interested in figuring out how much the support departments are costing in order to try to improve their current operations. Initial discussions with each of the departments has been provided by you to them and a matrix has been prepared that shows the interactions with each of the departments. Support Departments Operations Departments Support Information Human Finance and Manufacturing Selling and Departments technology Resources Accounting Distribution Human 20% 0% 40% 30% 10% resources Information 0% 15% 20% 45% 20% technology Finance and 20% 30% 0% 30% 20% accounting The following information outlines the budgeted costs for each of the departments of the business for the upcoming year. Departments Department costs Information technology $60,000 Human resources $10,000 Finance and accounting $90,000 Manufacturing $150,000 Selling and distribution $100,000 Required: 1. Calculate the allocation of the budgeted costs from the support departments to the operations department using the direct cost allocation method. Please show all of your workings, inputs and calculations used [ 10 marks] 2. Explain why the step-down method would be a better way to allocate departmental costs rather than the direct method [5 marks] 3. Identify two (2) important considerations when communicating these cost calculations to the department managers of the manufacturing and selling and distributions operations departments. [5 marks]