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Golden Martini has two production departments, Bottling and Packaging. Both departments are serviced by a single support department information technology ( IT ) . Support
Golden Martini has two production departments, Bottling and Packaging. Both departments are serviced by a single support departmentinformation technology IT Support department costs are allocated to production departments on the basis of support department hours. The IT department has fixed costs of $ In addition, the IT department incurs a rate of $ per hour in variable costs. Budgeted and actual IT department hours in each production department are as follows:
Production Department Budgeted Hours Actual Hours
Bottling
Packaging
Total
if a singlerate cost allocation method is used, what amount of IT services costs will be budgeted for the bottling department?
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