Assignment Question(s): (Marks 10) Q1. State the reasons for allocating support department costs to the operating department. What are its various methods? Provide numerical examples of any two methods and discuss how these methods could be used to allocate these costs? (CH 8, 2.5 Marks) Answer: Q2. Z&C has two support departments, A1 and A2, and two operating departments, B1 and B2. Z&C has decided to use the direct method and allocate variable A1 dept. costs based on the number of transactions and fixed Al dept. costs based on the number of employees. A2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided: (CH 8, 2.5 Marks) Support Departments Operating Departments Al A2 BI B2 Total Department variable costs 5,000 6,000 38,000 21,000 Total department fixed costs 5,800 11,000 42,000 18,000 Number of transactions 15 18 80 45 Number of employees 5 7 15 12 Number of service requests 12 7 15 10 Number of computers 6 8 10 12 Allocate variable and fixed costs