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Q 3 . ADLG Company has two support departments, SS 1 and SS 2 , and two operating departments, OD 1 and OD 2 .

Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and OD2. The company has decided to use the direct method and allocate variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on the number of employees. SS2 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 values have been extracted for the allocation: (4 Marks)
Support Departments Operating Departments
SS1 SS2 OD1 OD2
Total Department variable costs 16,00019,000105,00068,000
Total department fixed costs 19,50034,000120,00055,000
Number of transactions 5055250140
Number of employees 18244738
Number of service requests 37222632
Number of computers 20253137
You are required to allocate variable and fixed costs.Q3. ADLG Company has two support departments, SS1 and SS2, and two operating departments, OD1 and OD2. The company has decided to use the direct method and allocate variable SS1 dept. costs based on the number of transactions and fixed SS1 dept. costs based on the number of employees. SS2 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 values have been extracted for the allocation
\table[[,Support Departments,Operating Departments],[,SS1,SS2,OD1,],[Total Department variable costs,16,000,19,000,105,000,68,000],[Total department fixed costs,19,500,34,000,120,000,55,000],[Number of transactions,50,55,250,140],[Number of employees,18,24,47,38],[Number of service requests,37,22,26,32],[Number of computers,20,25,31,37]]
You are required to allocate variable and fixed costs.
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