Harlow Studios rents out its studio facilities to local marketing firms to produce advertisements. The cost accountant wants to allocate the costs incurred by the Janitorial department to the Filming and Post Production departments.

The manager of the Janitorial department determined at the beginning of the year that the annual fixed costs would be $247,500. She also determined that the cost for labour and cleaning supplies would be classified as variable costs and budgeted at $0.65 per square metre of floor space cleaned. At the end of the year, actual fixed costs were $520,000 and actual cost per square metre cleaned was $0.80.

The managers of the Filming and Post Production Departments provided the following information:

Filming Department Post Production Department Budgeted floor space 112,500 25,000 (Square metres) Actual floor space cleaned 107,500 27,500 (Square metres)