A shared services department provides support to three divisions: Sales, Marketing, and Operations. The department incurred $400,000 in overhead costs. The following data is available:

• Sales: 300 customer inquiries
• Marketing: 20 promotional campaigns
• Operations: 500 support requests
• Allocation bases:
  • Sales: Number of customer inquiries
  • Marketing: Number of promotional campaigns
  • Operations: Number of support requests

a. Calculate the overhead allocation rate for each division. b. Allocate the overhead costs to each division. c. Discuss the implications of using different allocation bases for cost allocation.