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PE T Pe S Question 4 Partially correct Mark 3.13 out of 12.50 Comprehensive support department allocations P Flag question Management at C. Pier
PE T Pe S Question 4 Partially correct Mark 3.13 out of 12.50 Comprehensive support department allocations P Flag question Management at C. Pier Press has decided to allocate costs of the paper's two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration Human resources Advertising Circulation Totals $390,750 246,350 478,900 676,300 $1,792,300 5 $193,550 4 145,850 6 381,200 13 935,150 28 $1,655,750 a. Using the direct method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest whole dollar. Total service costs allocated to Advertising: 192,150 Total service costs allocated to Circulation: 444,951 b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $ 192,150 Circulation total costs $1.121 251
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