Question 1: Support Department cost allocation Milton Limited manufactures Cars and Trucks for both domestic and international market. The company has two product lines (cars and trucks), which are produced in separate manufacturing facilities; however, both manufacturing facilities share the same support services namely Information Technology and human resources. The following shows total costs for each manufacturing facility and for each support department. Total Costs by Variable Costs Fixed Costs Department (In thousands) (In thousands) (In thousands) Information technology $2,500 $6000 $8,500 (IT) Human resources (HR) $500 $2700 $3,200 Cars $15,000 $35,000 $50,000 Trucks $5,000 $1 1,000 $16,000 Total costs $23,000 $54,700 $77,700 The total costs of the support departments (IT and HR) are allocated to the production