CH8-Q5)

The Bridgeport Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research department's costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration department's costs are allocated based on the number of employees in each department. Records are available for last period as follows: Support Operating Departments Departments Research Administration Retail Institutional $ 360,100 Payroll costs $ 332,800 $ 306,900 $ 535,800 Other costs $ 227,650 $ 142,400 $ 128,520 $ 217,360 Research hours 100 200 500 300 Number of employees 7 10 9 9 9 9 Using the reciprocal method, determine the total cost of operations for each sales division. Use either simultaneous equations or Excel Solver. (Round all entries to whole amounts, e.g. 5,275.) Support Operating Departments Departments Research Administration Institutional Retail Total Allocation bases: Research hours % % % Number of employees % %6 %6 Total department costs: : $ $ Cost allocations: Research Administration Total allocated cost $