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Case #3 Blue Dot Company budgeted the following manufacturing overhead costs for the 2020 fiscal year. Accounting & finance Human resources Industrial design Production (support department) (support department) (operating department) (operating department) $500,000 $110,000 $315,000 $175,000 Budgeted services provided by the Accounting & Finance department: Human resources Industrial design Production 20% 30% 50% Budgeted services provided by the Human Resources department: Accounting & finance Industrial design Production 15% 65% 20% Required: (A) Using the information provided above, allocate costs from the supporting departments to the operating departments using the Direct Method. (B) Ignoring your calculations in (A), use the information provided above to allocate costs from the supporting departments to the operating departments using the Step Down method with the Accounting & Finance department allocating first. (C) Ignoring your calculations in (A) and (B), use the information provided above to allocate costs from the supporting departments to the operating departments using the Step Down method with the Human Resources department allocating first. (D) Ignoring your calculations in (A) to (C), use the information provided above to allocate costs from the supporting departments to the operating departments using the Reciprocal Method using either linear equations or repeated iterations

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