Management at C. Pier Press has decided to allocate costs of the paper's two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available:

a. Using the direct method, allocate the support department costs to the revenue-generating departments.
b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations?
c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments.
d. Using your answer to (c), what are the total costs of the revenue-generating departments after the allocations?
e. Using the algebraic method, allocate the support department costs to the revenue-generatingdepartments.

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Number of Employees Dollars of Assets Department Administration Human resources Advertising Circulation Direct Costs 390,750 246,350 478,900 676300 $1792300 Employed 4 6 13 28 193,550 145,850 381,200 935,150 $1,655,750 Totals