PROBLEM 1 (Direct and Reciprocal Methods) Secure R US specializes in the assembly and installation of high-quality security systems for the home and business segments of the market. The four departments at its highly automated state-of-the-art assembly plant are as follows: Service Departments Engineering Support Information Systems Support Assembly Departments Home Security Systems Business Security Systems The budgeted level of service relationships at the start of the year was Supplied by Engineering Support Information Systems Support Used by Information Home Business Engineering Systems Security Security Support Support Systems Systems 0.10 0.40 0.50 0.20 0.30 0.50 The actual level of service relationships for the year was Supplied by Engineering Support Information Systems Support Used by Information Home Business Engineering Systems Security Security Support Support Systems Systems 0.15 0.30 0.55 0.25 0.15 0.60 Secure R Us collects fixed costs and variable costs of cach department in separate cost pools. The actual costs (in thousands) in each pool for the year were Engineering Support Information Systems Support Fixed-cost Variable-Cost Pool Pool $2,800 $8,100 $8,500 $3,750 Fixed costs are allocated on the basis of the budgeted level of service. Variable costs are allocated on the basis of the actual level of service. The support department costs allocated to each assembly department are allocated to products on the basis of units assembled. The units assembled in each department during the year were 7,950 units Home Security Systems Business Security Systems 3,750 units