Woodstock Binding has two service departments, IT $($Information Technology$)$ and HR $($Human Resources$),$ and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets $($issued with each IT request$)$ in each department and HR costs on the basis of employees in each department.

The following data appear in the company records for the current period:

IT HR Publishing Binding

IT tickets $01,1001,1003,300$

Employees $1602440$

Department direct costs $ $153,000$ $ $250,400$ $ $430,000$ $ $390,000$

Required:

Use the step method to allocate the service costs, using the following:

The order of allocation starts with IT$.$

The order of allocation starts with HR$.$