=+The new building cost the university $30 million and was depreciated using the straight-line method over 20 years. At the end of 2015, three departments occupied the building: executive offices of the Vice-Chancellor, accounting and human resources. Each department’s usage of its assigned space was as follows:

Chapter 13: Allocation of support-department costs, common costs and revenues 537 M13_HORN3377_02_LT_C13.indd 537 2/09/13 3:53 PM Department Actual office space used

(sq. metres)

Planned office space used

(sq. metres)

Practical capacity office space

(sq. metres)

Executive 1625 1240 1800 Accounting 2600 2604 3300 Human resources 2275 2356 2400 Required 1 How much of the total building cost will be allocated in 2015 to each of the departments, if allocated on the basis of the following?

a actual usage b planned usage c practical capacity