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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
|
Dep A
|
Dep B
|
total cost before allocation $
|
$92911
|
$160000
|
$400000
|
$600000
|
headcount (number of employees)
|
75
|
75
|
225
| |
maintenance hours
|
800
|
|
1290
|
600
|
Compute the costs allocated
by HR to Department B, using direct method and step down method
0%
0%
0%
0%
0%