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Interrelated Service Costs/Outsourcing Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The design firm consists of two distinct

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Interrelated Service Costs/Outsourcing Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The design firm consists of two distinct services to customers: Sketching and Installation. There are also support functions for the Eagle's Crest Design that are separated into two departments: Office and Technology Support. Office encompasses all the expenses associated with the office support necessary to run the business. Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs. Cost data of all departments are as follows. Technology Support Office Sketching Installation Total $21,000 $16,000 $46,695 $60,305 $144,000 The Office and Technology Support costs are allocated based on the service hours they provide to other departments. The departments receive the following percentage of service hours from the Technology Support Department: Department rendering service Technology Support Office Sketching Installation Technology Support 15% 45% The departments receive the following percentage of service hours from the Office Department: Department rendering service Technology Support Office Sketching Installation Office 25% 35% Interrelated Service Costs/Outsourcing Eagle's Crest Design is an interior design firm that specializes in hotel interior decorating. The design firm consists of two distinct services to customers: Sketching and Installation. There are also support functions for the Eagle's Crest Design that are separated into two departments: Office and Technology Support. Office encompasses all the expenses associated with the office support necessary to run the business. Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs. Cost data of all departments are as follows. Technology Support Office Sketching Installation Total $21,000 $16,000 $46,695 $60,305 $144,000 The Office and Technology Support costs are allocated based on the service hours they provide to other departments. The departments receive the following percentage of service hours from the Technology Support Department: Department rendering service Technology Support Office Sketching Installation Technology Support 15% 45% The departments receive the following percentage of service hours from the Office Department: Department rendering service Technology Support Office Sketching Installation Office 25% 35%

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