Xnip CanCorp has two operating departments: Eastern Department and Western Department. Each of the operating departments uses the services of the company's two support departments: Engineering and Information Technology. Additionally, the Engineering and Information Technology departments use the services of each other. Data concerning the past year are as follows: < Support Departments < Operating Departments < 2 Engineering Information Eastern Western Total Department Department Technology Budgeted OH Costs < $300,000 $250,000 $650,000 $920,000 $2,120,000 Before and interdepartmental allocations < Support work furnished: < By Engineering - Budgeted < $60,000 $50,000 $90,000 $200,000 Engineering Salaries < Percentages 30% 25% 45% < 100% < By Information < 450 1,500 1,050 3,000 Technology - Budgeted IT service hours Percentages < %15 50% 35% 100% < Required < < 1. What are the total overhead costs of the operating departments (Eastern and Western) after the support-department costs of Engineering and Information Technology have been allocated using: a) the direct method < b) the step-down method (allocate Engineering first) < c) the step-down method (allocate Information Technology first) < 2. Which method would you recommend that Can Corp use to allocate service-department costs? Why? < Question 2 (15 marks)