Please complete both questions using the data provided.

North Central Health Care Facilities has three Revenue Producing Departments and four Non-Revenue Producing departments with the data and costs as follows: Costs Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient $500,000 170,000 250,000 200,000 500,000 600,000 410,000 Cost Driver Direct costs Square Feet Number of Purchase Orders Number of Meals Revenue Producing -N/A Revenue Producing -N/A Revenue Producing -N/A Cost Driver Data Meals Served Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient Square feet 1,200 3,000 1,000 4,000 25,000 11,000 4,000 Purchase Orders 1,600 1,400 1,350 1,000 1,500 1,300 2,200 200 100 150 200 600 300 100 REQUIRED: 1. Prepare a memo describing and comparing the use of the direct method and the step-down method. Include a recommendation as to which you would use and explain that recommendation. 2. Prepare an Excel spreadsheet supporting your memo. a. Prepare a Cost report, using the Direct Method. b. Prepare a Cost Report, using Step-down Method. i. Prepare the step-down. ii. Determine the total amount of costs of each of the non-revenue producing departments that would be allocated to each of the revenue producing departments. Prepare a separate table providing this information. North Central Health Care Facilities has three Revenue Producing Departments and four Non-Revenue Producing departments with the data and costs as follows: Costs Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient $500,000 170,000 250,000 200,000 500,000 600,000 410,000 Cost Driver Direct costs Square Feet Number of Purchase Orders Number of Meals Revenue Producing -N/A Revenue Producing -N/A Revenue Producing -N/A Cost Driver Data Meals Served Departments Administration Maintenance Purchasing Dietary Sunny Vale Nursing Home In-Patient Out-Patient Square feet 1,200 3,000 1,000 4,000 25,000 11,000 4,000 Purchase Orders 1,600 1,400 1,350 1,000 1,500 1,300 2,200 200 100 150 200 600 300 100 REQUIRED: 1. Prepare a memo describing and comparing the use of the direct method and the step-down method. Include a recommendation as to which you would use and explain that recommendation. 2. Prepare an Excel spreadsheet supporting your memo. a. Prepare a Cost report, using the Direct Method. b. Prepare a Cost Report, using Step-down Method. i. Prepare the step-down. ii. Determine the total amount of costs of each of the non-revenue producing departments that would be allocated to each of the revenue producing departments. Prepare a separate table providing this information