Q$2.$ PPLC Company has two support departments, SD$1$ and SD$2,$ and two operating departments, OD$1$ and OD$2.$ The company decided to use the direct method and allocate variable SD$1$ dept. costs based on the number of transactions and fixed SD$1$ dept. costs based on the number of employees. SD$2$ dept. variable costs will be allocated based on the number of service requests, and fixed costs will be allocated based on the number of computers. The following information is provided:

$(4$ Marks$)($Chapter $8,$ Week $10)$

$\backslash$table$[[,$Support Departments,Operating Departments$],[,$SD$1,$SD$2,$OD$1,$OD$2],[$Total Department variable costs,$18,000,19,000,51,000,35,000],[$Total department fixed costs,$20,000,24,000,56,000,30,000],[$Number of transactions,$30,40,200,100],[$Number of employees,$14,18,35,30],[$Number of service requests,$28,18,35,25],[$Number of computers,$15,20,24,28]]$

You are required to allocate variable and fixed costs using direct method.PPLC Company has two support departments, SD$1$ and SD$2,$ and two operating departments, OD$1$ and OD$2.$ The company decided to use the direct method and allocate variable SD$1$ dept. costs based on the number of transactions and fixed SD$1$ dept. costs based on the number of employees. SD$2$ dept. variable costs will be allocated based on the number of service requests, and fixed costs will be allocated based on the number of computers. The following information is provided: $(4$ Marks$)($Chapter $8,$ Week $10)$

Support Departments Operating Departments

SD$1$ SD$2$ OD$1$ OD$2$

Total Department variable costs $18,00019,00051,00035,000$

Total department fixed costs $20,00024,00056,00030,000$

Number of transactions $3040200100$

Number of employees $14183530$

Number of service requests $28183525$

Number of computers $15202428$

You are required to allocate variable and fixed costs using direct method.