Chapter One Store has two service departments, Warehouse and Data Centre. Warehouse Department costs of $175,000 are allocated on the basis of budgeted warehouse-hours. Data Centre Department costs of $75,000 are allocated based on the number of computer log-on hours. The costs of operating departments Music and Books are $125,000 and $150,000, respectively. Data on budgeted warehouse-hours and number of computer log-on hours are as follows: Production Departments Music Books Support Departments Warehouse Data Centre Department Department $175,000 $75,000 NA 150 100 NA Budgeted costs Budgeted warehouse-hours Number of computer hours $125,000 500 400 $150,000 750 400 B) Among the three methods of allocating support costs (direct, step-down, and reciprocal), which method do you prefer? Why? (6 marks) C) Briefly discuss the four criteria that might be used to justify cost allocation decisions of supporting department costs to operating departments. (8 marks)