Wakowski Companys annual budget for its three support (non-revenue producing) departments (Administration, legal, and Engineering) and two production (revenue producing) departments (Processing and Finishing) is as follows:

	Annual Budget
	Administration	Legal	Engineering	Processing	Finishing	Total
Direct Costs	$2,130	$1,680	$2,370	$7,520	$7,200	$20,900
Number of Employees	80	40	60	400	300	880
Cases	800	600	400	1,600	2,000	5,400
Engineering hours	30	40	30	136	204	440

Using the order listed, determine how much costs should be allocated to each revenue producing (production) department using

1. The direct method
2. The stepdown method
3. How was the order of allocation determined? Does the order make a difference?
4. Which would you recommend?