Problem 11-57 (Algo) Comparison of Allocation Methods (LO 11-1) Baldwin Enterprises has two service departments, Personnel and Legal, and two operating divisions, Eastern and Western. Personnel costs are allocated on the basis of employees and Legal costs are allocated on the basis of hours. A summary of Baldwin operations follows: Employees Hours Department direct costs Required: Personnel Legal 40 10,800 $380,000 $ 240,000 Eastern Western 120 5,400 40 $ 1,280,000 1,800 $870,000 a. Allocate the cost of the service departments to the operating divisions using the direct method. b. Allocate the cost of the service departments to the operating divisions using the step method. Start with Legal. c. Allocate the cost of the service departments to the operating divisions using the reciprocal method.