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 $01,5752,5202,205$

Employees $1602440$

Department direct costs $ $156,000$ $ $248,850$ $ $433,000$ $ $397,500$

Required:

Allocate the service department costs using the reciprocal method. $($Matrix algebra is not required because there are only two service departments.$)$