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1) D&L Company produces a speciality drinks. It has two operating departments-Mixing & Blending and Bottling & Labelling and two support departments-Human Resources and Information
1) D&L Company produces a speciality drinks. It has two operating departments-Mixing & Blending and Bottling & Labelling and two support departments-Human Resources and Information System D&L uses number of employees to allocate Human Resources costs and processing time to allocate Information Systems costs. The following data are available for October 2020: Support Departments Operating Departments M&B Budgeted cost incurred before any interdepartmental cost allocation $80,000 $250,000 $1,000,000 $600,000 HR IS B&L Support work supplied by human resource department 20 35 45 Budgeted number of employees Support work supplied by Information system department Budgeted processing time (minutes) 420 2,100 1,680 Instructions: Allocate the support departments' costs to the operating departments based on the Reciprocal Method (Linear Equation). (9)
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