DP World paid Cdn$676 million to buy the container port called Fairview DP World spent an additional Cdn$200 million for an expansion that readied Fairview to accept the largest vessels at sea DP World's total investment was Cdn$876 million ($676 million purchase price $200 million expansion cost) Of the $876 million invested by DP World into the Fairview container port, 95 percent ($788 4 million) was invested in the loading unloading department assets and 5 percent ($43 8 million) was invested in the container decontamination department assets The total joint variable costs for loading unloading in 2020 was $36 5 million In 2020, the loading unloading department for DP World's Prince Rupert facilities handled on average 3,600 of the 45 foot containers per day In 2020, the container decontamination department for DP World's Prince Rupert facilities handled on average 400 of the 45 foot containers per day DP Worlds $200 million expansion readied Fairview to accept the largest vessels at sea, which are increasingly favored by shippers seeking to load more containers to reduce costs The port variable overhead costs are allocated to the operating departments using the direct method The costs for 2020 show the various rates related to the Fairview Container port as follows Required Complete your answers in an Excel document and create a separate tab for each of the following Use the suggested template structures pictured below 1) Allocate the Variable Manufacturing Overhead to the two operating departments using the following information Your answer should follow the following template Hint the Total for Container Decontamination Department is between $2,400,000 answer Support Departments Port Information Maintenance Services Operating Departments Loading Container Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,200,000 $9,975,000 $265,000 $20,440,000 Support Work Furnished by Port Maintenance Budgeted labour hours Percentage Information Services Budgeted Computer Hours Percentage 116,800 20 0 408,800 70 0 58,400 10 0 584,000 100 0 3,650 10 0 10,950 30 0 21,900 60 0 36,500 100 0 DIRECT METHOD ANSWER Support Departments Port Information Maintenance Services Operating Departments Loading Container Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,200,000 $9,975,000 $265,000 $20,440,000 Support Work Furnished by Port Maintenance Allocation of Port Maintenance Information Services Allocation of Information Services Totals Number of Containers Handled per Year VMOH Allocated Cost per Container

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DP World paid Cdn$676 million to buy the container port called Fairview DP World spent an additional Cdn$200 million for an expansion that readied Fairview

DP World paid Cdn$676 million to buy the container port called Fairview
DP World spent an additional Cdn$200 million for an expansion that readied Fairview to accept the largest vessels at sea
DP World's total investment was Cdn$876 million ($676 million purchase price + $200 million expansion cost).
Of the $876 million invested by DP World into the Fairview container port, 95 percent ($788.4 million) was invested in the loading/unloading department assets and 5 percent ($43.8 million) was invested in the container decontamination department assets.
The total joint variable costs for loading/unloading in 2020 was $36.5 million.
In 2020, the loading/unloading department for DP World's Prince Rupert facilities handled on average 3,600 of the 45-foot containers per day. In 2020, the container decontamination department for DP World's Prince Rupert facilities handled on average 400 of the 45-foot containers per day
DP Worlds $200 million expansion readied Fairview to accept the largest vessels at sea, which are increasingly favored by shippers seeking to load more containers to reduce costs.
The port variable overhead costs are allocated to the operating departments using the direct method.
The costs for 2020 show the various rates related to the Fairview Container port as follows
Required: Complete your answers in an Excel document and create a separate tab for each of the following. Use the suggested template structures pictured below.
1) Allocate the Variable Manufacturing Overhead to the two operating departments using the following information.
Your answer should follow the following template. Hint the Total for Container Decontamination Department is between: $2,400,000 answer

Support Departments Port Information Maintenance Services Operating Departments Loading / Container Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,200,000 $9,975,000 $265,000 $20,440,000 Support Work Furnished by: Port Maintenance Budgeted labour hours Percentage Information Services Budgeted Computer Hours Percentage 116,800 20.0% 408,800 70.0% 58,400 10.0% 584,000 100.0% 3,650 10.0% 10,950 30.0% 21,900 60.0% 36,500 100.0% DIRECT METHOD ANSWER Support Departments Port Information Maintenance Services Operating Departments Loading/ Container Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,200,000 $9,975,000 $265,000 $20,440,000 Support Work Furnished by: Port Maintenance Allocation of Port Maintenance Information Services Allocation of Information Services Totals Number of Containers Handled per Year VMOH Allocated Cost per Container