H&R Clock provides bookkeeping services to clients in New York and California. H&R Clock has two support departmentsAccounting (ACC) and information technology (IT)and two operating divisionsPublic Companies and Private Companies. For the first quarter of 2020, the accounting records of the H&R Clock were as follows:

ACC

IT

PUBLIC

PRIVATE

Budgeted Cost

$2,400,000

$600,000

$19,000,000

$25,000,000

ACC

25%

45%

30%

IT

20%

30%

50%

Required:

Allocate the two support departments' costs to the two operating departments using the following methods:

a. Direct method

b. Step-down method (allocate ACC first)

c. The reciprocal method.