Michael Ltd is a business consultant firm that provides its service to its clients. Michael Ltd has two support departments: IT Support (IT) and Admin Support (Admin) department. In addition, Michaeel has two operation departments namely: Retail sector and Manufacturing sector. For the next quarter, the budgeted cost and the percentage of work of the support department used by the other departments is available below:

Support Department Operation Department IT Admin Retail Manufacturing Total Budgeted costs $ 1,200,000 1,552,500 7,500,000 8,000,000 18,200,000 Support work supplied by IT 25% 40% 35% 100% Support work supplied by Admin 10% 30% 60% 100%