Felix Corporation provides a variety of consulting services to a diverse range of clients. The company has three support departments and two operating departments whose cost details for a typical quarter are presented below. The existing cost allocation system is designed as follows: (1) the support department costs are allocated to the two operating departments, (2) the operating department costs are then allocated to individual jobs. The support department costs are allocated to the operating departments as follows: (1) Information Systems Department costs are allocated to Research and Preparation using a 70:30 ratio, (2) Administration Department costs are allocated using a 25:75 ratio, and (3) Legal Department costs are allocated using a 90:10 ratio. The costs accumulated in the two operating departments are allocated to individual jobs using professional labour hours as the allocation base. The Research and Preparation departments recorded 11,500 and 8,100 professional labour hours respectively for the quarter. Compute the pre-determined cost allocation rates for the two operating departments. Using the rates computed in #1 above, assign the costs to Job B789 and C456. The two jobs consumed 510 and 420 research professional labour hours respectively, and 475 and 350 preparation professional labour hours respectively. You have recently learnt about activity-based costing and decide to use five activity cost pools, one for each department. The additional information you have collected is as follows: Compute the pre-determined allocation rates for each activity cost pool. Felix Corporation provides a variety of consulting services to a diverse range of clients. The company has three support departments and two operating departments whose cost details for a typical quarter are presented below. The existing cost allocation system is designed as follows: (1) the support department costs are allocated to the two operating departments, (2) the operating department costs are then allocated to individual jobs. The support department costs are allocated to the operating departments as follows: (1) Information Systems Department costs are allocated to Research and Preparation using a 70:30 ratio, (2) Administration Department costs are allocated using a 25:75 ratio, and (3) Legal Department costs are allocated using a 90:10 ratio. The costs accumulated in the two operating departments are allocated to individual jobs using professional labour hours as the allocation base. The Research and Preparation departments recorded 11,500 and 8,100 professional labour hours respectively for the quarter. Compute the pre-determined cost allocation rates for the two operating departments. Using the rates computed in #1 above, assign the costs to Job B789 and C456. The two jobs consumed 510 and 420 research professional labour hours respectively, and 475 and 350 preparation professional labour hours respectively. You have recently learnt about activity-based costing and decide to use five activity cost pools, one for each department. The additional information you have collected is as follows: Compute the pre-determined allocation rates for each activity cost pool
