A C D E F G H L M The Calgary Company produced three Al based software (Timee, Muneyy, Cosst) and sells them to customers. Each software is considered a separate department. The company has two service departments, Programming and Testting. As a cost analyst, you need to recommend, whether to use Step Down method or Direct method to allocate service department costs to the three software departments based on 2021 costs of each department. Do not round any intermediate calculation, Service Department Production Department Actual Cost of 2022 Programming Testing Timee Muneyy Cosst Direct Labor Cost $600,000.00 $756,000.00 $2,320,000.00 $2,650,000.00 $3,095,000.00 Cost Allocation Base Labor Hours Program Hours Labor Hours Labor Hours Labor Hours Labor Hours in 2022 7,500 8,400 21,200 23,500 28,400 Program Hours in 2022 6,000 7,200 19,400 20,300 26,000 Shaded Space for Q-Z Part A: Using Direct Method of Allocation, determine total cost of Production Deparments after service department cost allocation. Production Department Allocated Cost to Production from Programming Allocated Cost to Production from Testing Total Cost of Production Department Space for Cost Allocation Calculation - Direct Method cost actuarial program testing Timee Muneyy Cosst service departmet 60,000,000 756,000.00 60,756,000 me' production department Full Mark Rcvd 1.5