Ch $11$ HW Cost Allocation

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Exercise $11-32($Algo$)$ Cost Allocation: Reciprocal Method $($LO $11-1)$

Woodstock Binding has two service departments, IT $($Information Technology$)$ and HR $($Human Resources$),$ and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets $($issued with each IT request$)$ in each department and HR costs on the basis of employees in each department.

The following data appear in the company records for the current period:

$\backslash$table$[[,$IT$,$HR$,$Publishing,Binding$],[$IT tickets,$0,1,555,2,488,2,177],[$Employees$,18,0,27,45],[$Department direct costs,$$154,400,$$$248,490,$$$432,200,$$$395,500$