Problem $1$

Samsung has two operatin$($g$)/($u$)$ser departments, Gen $4$& Gen $5.$ The two support departments are

Information Technology $($IT$)$ & Product Development $($PD$).$ The costs incurred in each of these

departments are as follows:

The actual level of support is as follows:

Determine the cost allocated to:

Gen $4$ using the direct method

Gen $5$ using the direct method

Gen $4$ using the step$-$down method $($allocating IT first$)$

Gen $4$ using the step$-$down method $($allocating PD first$)$

Gen $4$ using the reciprocal method

Gen $5$ using the reciprocal method