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d) Customer Support Call Center 2) Assume that Company X has three Departments (Alpha, Beta & Gamma) and they share common costs budgeted at $1,500,000,

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d) Customer Support Call Center 2) Assume that Company X has three Departments (Alpha, Beta \& Gamma) and they share common costs budgeted at $1,500,000, of which $1,000,000 is fixed. Management feels that direct labor hours drive variable costs, and that square footage of factory space is a good measure of capacity, which drives fixed costs. Gamma Department is the largest of the three departments, based on capacity. Using the information given, please allocate the common costs using: a) The Dual Allocation Method b) The Stand-Alone Cost Method (using direct labor hours) c) The Incremental Cost Method \begin{tabular}{lrrrr} & Alpha & \multicolumn{1}{c}{ Beta } & Gamma & Total \\ Direct Labor Hours & 25,000 & 15,000 & 10,000 & 50,000 \\ Factory Square Footage & 8,000 & 2,000 & 15,000 & 25,000 \end{tabular} Dual Allocation Method Variable Costs Fixed Costs Variable Cost Rate Fixed Cost Rate Variable Costs per DLH per Sq.Ft. Common Costs Allocated Alpha Beta Gamma Total Fixed Costs Total Costs Variable Costs Stand-Alone Cost Allocation Method Fixed Costs Cost Allocation Rate per DLH Common Costs Allocated Alpha Geta Gamma Incremental Cost Allocation Method Variabie Costs Fixed Costs Vuriable Cost Rate per DL.H Common Costs Allocated Variable Costs Alphe Beta Gamma Total Fined Costs Toual Coots d) Customer Support Call Center 2) Assume that Company X has three Departments (Alpha, Beta \& Gamma) and they share common costs budgeted at $1,500,000, of which $1,000,000 is fixed. Management feels that direct labor hours drive variable costs, and that square footage of factory space is a good measure of capacity, which drives fixed costs. Gamma Department is the largest of the three departments, based on capacity. Using the information given, please allocate the common costs using: a) The Dual Allocation Method b) The Stand-Alone Cost Method (using direct labor hours) c) The Incremental Cost Method \begin{tabular}{lrrrr} & Alpha & \multicolumn{1}{c}{ Beta } & Gamma & Total \\ Direct Labor Hours & 25,000 & 15,000 & 10,000 & 50,000 \\ Factory Square Footage & 8,000 & 2,000 & 15,000 & 25,000 \end{tabular} Dual Allocation Method Variable Costs Fixed Costs Variable Cost Rate Fixed Cost Rate Variable Costs per DLH per Sq.Ft. Common Costs Allocated Alpha Beta Gamma Total Fixed Costs Total Costs Variable Costs Stand-Alone Cost Allocation Method Fixed Costs Cost Allocation Rate per DLH Common Costs Allocated Alpha Geta Gamma Incremental Cost Allocation Method Variabie Costs Fixed Costs Vuriable Cost Rate per DL.H Common Costs Allocated Variable Costs Alphe Beta Gamma Total Fined Costs Toual Coots

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