Calculation:

Design Co. has two operating departments (Painting and Decorating) and two support departments (HR and IT). Using number of employees to allocate HR and IT tickets to allocate IT, use thedirect methodto allocate support department costs to operating departments.

How much of the IT costs of $260,000 are allocated to Painting?

HR IT Painting Decorating

Budget 125,000 260,000 450,000 550,000

Employees X 100 50 200

IT Tickets 40 X 200 200