MNO Ltd operates three departments: Production, Marketing, and Administration. The following costs were incurred during the year ended 31 December 2024:

Cost Item	Amount ($)
Direct materials	200,000
Direct labor	150,000
Indirect materials	30,000
Indirect labor	20,000
Depreciation	50,000
Utilities	40,000
Rent	60,000

Required: a. Classify each cost item as direct or indirect for each department. b. Allocate the indirect costs to the departments using an appropriate basis. c. Prepare a cost summary for each department. d. Discuss the importance of accurate cost allocation in managerial decision-making.