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3 DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant
3 DD Company has two departments, Dept. A and Dept. You are provided the following costs for five activities that occur at the manufacturing plant every month: Activity Total Costs (SAR) Material handling 315,000 Total number of units of Cost Driver 450,000 parts Supervision of direct labor 180,000 Janitorial and cleaning 250,000 Machining 350,000 110 employees 5,500 hours 8,500 machine hours Total costs 1,095,000 The above activities are used by the two departments as follows: + Material handling Supervision of direct labor Time spent cleaning Number of machine hours Department A Department B 220,000 parts 230,000 parts 65 employees 2,500 hours 45 employees 3,000 hours 6,000 machine hours 2,500 machine hours a. How much of the material handling cost will be allocated to Department A? b. What is the ABC allocation rate for supervision of direct labor
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