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Question 4 (6 points): A software development firm has three main production departments. Details provide in table below: Product Department Security Productivity Entertainment Sq feet

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Question 4 (6 points): A software development firm has three main production departments. Details provide in table below: Product Department Security Productivity Entertainment Sq feet 8,000 16,000 35,000 Employees 10 14 76 Tech Support Calls/year 765 130 500 Yearly Sales $2,300,000 $5,100,000 $13,000,000 In support of these production departments the firm has four service centers. Details provide in table below: Service Center HR Maintenance Administration Support Annual Costs $250,000 $300,000 $750,000 $500,000 ABC allocation basis Employees Yearly Sales Tech Support Calls/year Sq feet a) If a blanket rate based on Employees was used, what would be the indirect costs rate per employee? b) Using and ABC allocation how much indirect costs should be allocated to the Entertainment department

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