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Greendale Office Products has a warehouse that supplies office products to its store locations. The warehouse has two service departments, Human Resources (HR) and
Greendale Office Products has a warehouse that supplies office products to its store locations. The warehouse has two service departments, Human Resources (HR) and Information Technology (IT), and two operating departments, Packaging and Delivery. The following are partial cost allocation results for November: Costs allocated to Packaging $ 96,000 ? ? from HR from IT from HR $ 164,800 from IT Costs allocated to Delivery Total costs for the two service departments are $424,000. IT's services are provided as follows: 17.5 percent to Packaging. 70 percent to Delivery. The direct method of allocating costs is used. Required: a. What are the total service department costs (HR + IT) allocated to Delivery? b. Complete the table under Required B. c. What proportion of HR's costs were allocated to Packaging? To Delivery?
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