Question: please answer as soon as possible. G D B MF Ltd. has 2 service departments (Accounting and Maintenance) and 2 operating departments (Lawnmower and Weedwacker).

G D B MF Ltd. has 2 service departments (Accounting and Maintenance) and 2 operating departments (Lawnmower and Weedwacker). MF's management has decided to allocate Maintenance costs on the basis of the service hours used and Accounting costs on the basis of the number of employees. Below is data concerning MF's current operations: Maintenance Lawnmower Weedwacker $330,000 Accounting $270,000 20 Overhead costs Service hours # Employees $787,500 400 35 $612.500 480 50 10 Required: 1. Allocate the service departments costs using the direct method. (4 marks) 2. Allocate the service departments costs using the step-down method. The department with the higher overhead cost would be allocated first. (6 marks) 3. Allocate the service departments costs using the reciprocal method, assume that the adjusted maintenance cost is $325,400 and the adjusted accounting cost is $246,515. ( 4 marks) (Do not create equations to calculate the amount for the maintenance and accounting costs, use the amounts provided as the adjuste 4. Now write the equations for the service department costs under the reciprocal method. No need to further calculate (2 marks)
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