Question 6 The Star Company uses the step method for allocating the costs of its service departments to operating departments. The company has two service departments and two operating departments. The selected information for the four departments is given below: SERVICE OPERATING Departmental costs before allocation Employee hours Space occupied-square feet DEPARTMENTS DEPARTMENTS Dept. A Dept. B Dept. X Dept. Y Total $180,000 $45,000 $130,500 $344,500 $700,000 6,000 3.000 9,000 15,000 33,000 5,000 100 3,000 22,000 30,100 The company uses employee hours as the base for allocating the cost of department A and space occupied for allocating the cost of department B. Required: Allocate the cost of service departments to operating departments using step down method.