SASS Inc. provides software consulting services to wholesale and retail clients. SASS has two support departmentsadministrative services (AS) and information systems (IS)and two operating departmentswholesale software (WHOLESALE) and retail software (RETAIL). For the first quarter of 2017, SASS's cost records indicate the following: SUPPORT OPERATING AS IS WHOLESALE RETAIL TOTAL $600,000 $2,400,000 $8,756,000 $12,452,000 $24.208,000 Budgeted overhead costs before any inter- department cost allocations Support work supplied by AS (budgeted head count) Support work supplied by IS (budgeted computer time) 0% 25% 40% 35% 100% 10% 0% 30% 60% 100% Required: a. Allocate the two support departments' costs to the two operating departments using the following methods: (3 marks) i/ Direct method ii/Step-down method (allocate IS first) iii/ Step-down method (allocate AS first) b. In no more than 200 words, explain which step-down method (IS first Vs AS first) is preferable and why? Numerical computations are excluded from the word count. (9 marks)