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Question 5. SunChurro Lid manufactures has two factory facilities (Factory A and B) and two support departments that provide support to the two factories. The
Question 5. SunChurro Lid manufactures has two factory facilities (Factory A and B) and two support departments that provide support to the two factories. The two support departments are the human resources and information technology department. The following shows total costs for each manufacturing facility and support each support department: Total costs by Department Information Technology (IT) $ 2,000 Human Resources (HR) $ 1,000 Factory 'A $10,000 Factory 'B' S 8.000 Total costs $21.000 The total costs of the support department are allocated to Factory A and B using a single rate based on the following: Information Technology Number of IT labour hours worked by the department Human Resources Number of employees supported by the department The related data are as follows: Department IT Hours used No of employees Factory 'A' 5,000 120 Factory 'B' 3,000 40 Information Technology 40 Human Resources 2,000 Required ((show your workings and round it to the nearest two decimal places)): a) Using the step-down method, determine the amount of support department costs (5 marks) allocated to the two operation departments if the highest support department's cost is allocated first b) Using the reciprocal method, determine the amount of support department costs (10 marks) allocated to the two operation departments (rounded the final answer to whole dollars) ANSWER 5: PLACE YOUR ANSWER HERE (PRESS ENTER TO CREATE MORE SPACE)
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