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ABC, an online retailer, has two operating departments; corporate sales and consumer sales, and two support departments; Help desk and Transportation. ABC uses the number
ABC, an online retailer, has two operating departments; corporate sales and consumer sales, and two support departments; Help desk and Transportation. ABC uses the number of hours spent in each department to allocate help desk costs and the number of employees in each department to allocate Transportation costs. The following data are available for 2020: Support departments Operating Departments help desk Transportation Corporate sale Consumer sale Budgeted cost 150,000 240,000 750,000 480,000 25 175 150 Number of employees 2,000 8,000 10,000 hours provided by help desk Required: allocate the cost of the support departments to the operating departments using the three methods and calculate the cost of the operating departments after the allocation
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