Kovacik manufactures two types of piggy banks in two different departments: a kangaroo-shaped piggy bank and a platypus-shaped piggy bank. The plant is highly automated and contains two support departments, these being engineering and design, and information systems. Kovacik allocates support department costs according to estimated service use. Estimated information for next year is as follows: Required (a) Allocate the support department costs to the operating departments using the direct method ( 2 marks) Note: you might want to practice using the table function above. It's quite easy to use, and will help you to organise your answers in the exam. (b) Allocate the support department costs to the operating departments using the step-down method (4 marks) (c) Determine the estimated total allocated costs for the operating departments using the reciprocal method. (9 marks)
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