Comprehensive support department allocations

Management at C. Pier Press has decided to allocate costs of the papers two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available:

Department		Direct Costs	Number of Employees	Assets Employed
Administration		$390,750	5	$193,550
Human resources		246,350	4	145,850
Advertising		478,900	6	381,200
Circulation		676,300	13	935,150
Totals		$1,792,300	28	$1,655,750

a. Using the direct method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest whole dollar. Total service costs allocated to Advertising: Answer

Total service costs allocated to Circulation: Answer b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments. Enter the total amount of service department costs (Administration and Human Resources) allocated to revenue-generating departments (Adverting and Circulation). Note: Round your final answers only to the nearest whole dollar. Total service costs allocated to Advertising: $Answer Total service costs allocated to Circulation: $Answer d. Using your answer to (c), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer e. Using the algebraic method, allocate the support department costs to the revenue-generating departments. Enter the total amount of service department costs (Administration and Human Resources) allocated to revenue-generating departments (Adverting and Circulation). Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest whole dollar. Total service costs allocated to Advertising: $Answer Total service costs allocated to Circulation: $Answer f. Using your answer to (e), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer