Section II: Problems (each problem is weighted equally)- Answer each question provided at the end of the fact pattern. Problem I: Dylap Corporation The Dylap Corporation has two service centers: IS (information systems) and acecountin The service centers provide services to one another as well as to the three o divisions: Dysap, Dynap and Dycap. The distribution of each service ce well as its costs (in millions) is given as follows: perating nter's output as Fraction of Service Center Output Used Dysap Dynap Dycap Total is Accounting 0.15 5S Accounting Division Division Division Cost 0.25 $17.3 is 0.22 0.15 Accounting 0.040.16 0.38 0.270.15 $8.7 $26.0 Required: 1. Utilizing the Direct Allocation Method with revised shares, how much of the IS and 2. Utilizing the Step Down Allocation method with IS first, how much of the IS and 3. Assuming you are negotiating on behalf of the Dynap Division, which allocation method Accounting Department costs would be allocated to the operating divisions? Accounting Department costs would be allocated to the operating divisions? would you suggest Dylap Corporation utilize to allocate service center costs to operating divisions and why? What specific points would you offer to persuade the CEO of Dylap Corporation to select the allocation method you advocate