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Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper's two support departments (administration and human resources) to
Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper's 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 $1,094,100 14 5541,940 Human resources 689,780 11 408,380 1.340.920 17 1,067,360 Advertising Circulation 1.893.640 36 2.618,420 Totals 55,018,440 78 $4,636,100 Department Direct Costs Number of Employees Assets Employed $1.094,100 $541.940 Administration 14 Human resources 689.780 11 408.380 Advertising 1.340.920 17 1,067,360 Circulation 1.893,640 36 2.618,420 Totals $5.018,440 78 $4.636,100 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 359). Note: Round your final answer to the nearest whole dollar. Amount allocated to Advertising: $ 538,019 Amount allocated to Circulation: $ 1,245,861 b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $ 1,878,939 Circulation total costs $ 3,139,501 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. Note: Round your final answers only to the nearest whole dollar. Amount allocated to Advertising: $ 256,255 X Amount allocated to Circulation: $ 542,658 X d. Using your answer to (c), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $ 541,490 x Circulation total costs $ 1,242,390 X e. Using the algebraic 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. Amount allocated to Advertising: $ 256,255 X Amount allocated to Circulation: $ 542,658 X f. Using your answer to (e), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $ 256,255 x Circulation total costs $ 542,658 X
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