Problem 11-60 (Static) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two operating departments (Retail and Commercial) and three service departments: Operations, Information Technology (IT), and Transactions. For the last period, the following costs and service department usage ratios were recorded: Supplying Department Transactions IT Operations Direct cost Required: Using Department Transactions IT Operations Retail Commercial 0 70% 30% 10% 20% 30% 40% 60% 10% 30% $ 240,000 $ 660,000 $ 1,500,000 $ 3,700,000 $ 2,250,000 a. Allocate the service department costs to the two operating departments using the reciprocal method. Allocated to: From: Costs Operations Transactions Retail Commercial IT $ 660,000 Operations Transactions Total