Question: Please show solution in excel and try to make clear what was done. Thank you! Support-department cost allocations; direct, step-down, and reciprocal methods. Ballantine Corporation

 Please show solution in excel and try to make clear what

Please show solution in excel and try to make clear what was done. Thank you!

Support-department cost allocations; direct, step-down, and reciprocal methods. Ballantine Corporation has two operating departments: Eastern Department and Western Department. Each of the operating departments uses the services of the company's two support departments: Engineering and Information Technology. Additionally, the Engineering and Information Technology departments use the services of each other. Budgeted data are as follows: | Support Departments Operating Departments Information Eastern Western Engineering Technology Department Department Total Budgeted overhead costs before S300,000 $250,000 $650,000 $920,000 $2,120,000 any interdepartment cost allocations Support work furnished: By Engineering Budgeted Engineering salaries $60,000 $50,000 $90,000 $200,000 Percentage 30% 25% 45% 100% By Information Technology Budgeted IT service hours 450 1,500 1,050 3,000 Percentage 15% 50% 35% 100% Required: 1. Using an Excel spreadsheet, complete a support department allocation to determine the total overhead costs of the operating departments (Eastern and Western) after the support- department costs of Engineering and Information Technology have been allocated using (a) the direct method, (b) the step-down method (allocate Engineering first), and (c) the reciprocal method? 2. Which method would you recommend that Ballantine Corporation use to allocate service- department costs? Why

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