Green Thumb Landscaping (Allocation of Support Department Costs) Below is budgeted data for the year. Each operating department (New Lawn Installations, Low Maintenance Lawns, and High Maintenance Lawns) has its own overhead directly associated with the operating department, such indirect materials and indirect labor used in its operations. Service department costs (support departments) include Administration, Accounting & Finance, and Landscaping Designs. These costs are allocated using three unique allocation bases: Administration costs are allocated based on Number of Employees, Accounting & Finance is allocated based on Number of Purchase Orders issued; and, Landscaping Designs are allocated based on Number of Designs Budgeted Data Accounting & Landscaping Finance Designs $102,200 5412 800 Low Maintenance Lawns Administration Total New Lawn Installations $255,242 250 High Maintenance Lawns 5551 323 300 $172.000 $450,436 450 $1.964,000 1,000 Budgeted indirect costs Budgeted Number of Jobs Number of Employees Number of Purchase Orders Number of New Designs & Updates 4 2 4 4 22 100 0 200 3 1000 200 50 0 300 0 2,010 5 350 50 40 290 Use the Step Method for allocating service department costs. Allocate service department costs in the following order: General Services, Accounting & Finance, Engineering & Design. When calculating percentages used in the allocation, always round to FOUR decimals. Compute the total allocation of service department costs (the combined allocation from Administration, IT Support, and Custodial Services) to each of the three operating departments. 1. Enter total allocation to New Lawn Installations. 2. Enter total allocation to Low Maintenance Lawns. 3. Enter total allocation to High Maintenance Lawns. Compute total overhead for each operating department. (The allocated overhead from service departments plus the direct overhead for each operating department.) 4. Enter total overhead for New Lawn Installations. 5. Enter total overhead for Low Maintenance Lawns. 6. Enter total overhead for High Maintenance Lawns. 7. Compute cost per job for New Lawn Installations. 8. Compute cost per job for Low Maintenance Lawns. 9. Compute cost per job for High Maintenance Lawns