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Company X has two main departments – A and B - and two support departments - HR ...

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Company X has two main

departments – A and B - and two support departments - HR and Maintenance. The

company allocates support department costs in both departments using headcount

as a basis for allocation, as per the following data:

 

HR

Maintenance

Dept A

Dept B

total cost before

allocation $

$11477300

$165352

$420372

$632412

headcount (number

of employees)

50

75

225

maintenance hours

800

 

1290

600

Compute the costs allocated

by HR to Department A, using direct method and step down method (assuming that HR is the first department to be considered in the allocation).

0%
0%
0%
0%
0%
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