Part B: The following question is based on information in this question.

Kirkland Bike Corp. has two production departments, each responsible for a particular product line. The product lines are road bikes (Road) and mountain bikes (Mountain). It also has two support departments, IT and HR.

The following data are available regarding the companys costs:

	Support Departments		Production Departments
	IT	HR	Road	Mountain
Direct Overheads Production			$200,000	$150,000
Direct Overheads Support	$80,000	?
Service
IT (computers)		30	20	10
HR (personnel)	5		25	20

Under the reciprocal method of allocating support department costs, HR allocates $40,000 of its pseudo overhead to the Road department.

Q. What is HR's direct overhead? Show the quantitative working clearly.

Q. What will be the total overheads for Road and Mountain after the support departments are allocated?