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Question 2 (24 marks) A company has two operating departments: Retail Shops and Online Shop. Each of the operating departments uses the services of the company's two service departments: Admin and HR. Additionally, the Admin and HR departments use the services of each other. Data concerning the past year are as follows: Admin HR Retail Shops Online Shop Total $250,000 $190,000 $380,000 $470,000 $1.290,000 Budgeted overhead costs before any interdepartment cost allocations Support work furnished: For Admin department Number of Admin tasks For HR department No. of employees 90 290 120 21 62 17 Required (a) Compute the total overhead costs of the operating departments (Retail Shops and Online Shop) after the service department costs of Admin and HR have been allocated using (i) the direct method. (6 marks) (ii) the step-down method. (using the sequence of cost of service provided) (7 marks) (iii) the reciprocal method. (8 marks) (b) Which method would you recommend that the company use to allocate service department costs? Why? You should consider different perspectives