MURUMU 12 URS) #1. (4 Marks) Mr. Brown and Mr. Black own cleaning companies. They are considering renting a small sweeper to share between their two separate businesses. Mr. Brown requires the machine for a total of 900 hours and Mr. Black 600 hours. If each company rents the machine on their own, the hourly rate is $40. If they rent the machine together the hourly rate drops to $32 a) Calculate Mr. Brown's and Mr. Black's respective share of the cost using the stand-alone method b) Calculate Mr. Brown's and Mr. Black's respective share of the cost using the incremental - method. Assume Mr. Brown to be the primary party, #2. (8 Marks) E-Mark, an online store, has two operating divisions - Corporate Sales and Consumer Sales - and two support divisions -Admin and IT. Each operating division operates independently. E-Mark uses number of employees to allocate Admin costs and processing time to allocate IT costs. The following data are available for the month: SUPPORT DEPT Admin IT OPERATING DEPT Corp Sales Cons. Sales Budgeted costs incurred before any interdivision allocations $85,000 $200,000 $1,000,000 $500,000 Admin budgeted # of employees deployed 20 40 40 IT budgeted # of processing time deployed (minutes) 300 2,000 1,700 Using the reciprocal method, allocate the support department costs. Dik 24po/ BIW=36 74 X5212.9 X 32 - 0 0