74 7 method (2) the step method maintenance Denartmental Cost Allocation Data Performance per of has three major functional areas: computer programming informatie software training. Carol Bingham, a pricing analyst in the accou asked to develop total costs for the functional areas. These costs will be ing a new contract. In computing these costs, Carol is considering three departmental allocation approach to allocate overhead costs: the direct and the reciprocal method. She assembled the following data from the information systems and facilities: Service Departments Production Departments Information Systems Sot Consulting Tre Information Systems $80,000 Computer Programming $160,000 Facilities $40,000 $190,000 $125.000 600 1,200 Budgeted overhead Information systems (hours) Facilities (square feet) 960 600 240 (LOT department Required Use 4 or more decimal places (e.g., 33.3333%) in your calculations. 1. Using computer usage time as the application base for the information systems departe feet of floor space as the application base for the facilities department, apply Overhe service departments to the production departments, using these three methods. a. Direct method. b. Step method (both for the information systems department going first and for the facilities going first). c. Reciprocal method. 2. Rather than allocate costs, how might Data Performance better assign the information systems costs? (CMA Adapted)