Question $5(12$ marks; $21\mathrm{.}6$ minutes$)$

Spirit Training Inc. manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines, clothing and shoes, which are produced in separate manufacturing facilities; however, both manufacturing facilities share the same support services for information technology $($IT$)$ and human resources $($HR$).$

The following shows total costs for each manufacturing facility and for each support department:

$\backslash$table$[[,$Variable Costs,Fixed Costs,$\backslash$table$[[$Total cost by$],[$Department$]]],[$IT$,$R$500,$R$1500,$R$2000],[$HR$,$R$100,$R$900,$R$1000],[$Clothing$,$R$3000,$R$7000,$R$10000],[$Shoes$,$R$2500,$R$5500,$R$8000],[$Total costs,R$7100,$R$16900,$R$24000]]$

The total costs of the support departments $($IT and HR$)$ are allocated to the production departments $($Clothing and Shoes$)$ using a single rate based on the following:

$\backslash$table$[[$IT$,$Number of IT labour hours worked by department$],[$HR$,$Number or employees supported by department$]]$

Data on the bases, by department, are given as follows:

$\backslash$table$[[$Department$,$IT hours used,Number of Employees$],[$Clothing$,5000,120],[$Shoes$,3000,40],[$IT$,-,40],[$HR$,2000,-]]$

Required:

$5\mathrm{.}1$ Allocate the support department costs to the two product lines using the direct method.

$(12)$