Question 6: Support Department Cost Allocation Tampa Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Assembly. There are three service departments: Maintenance, Human Resources (HR), and Computer Aided Design (CAD). The usage of these service departments' output during the year just completed is as follows: Provision of Service Output (in hours of service) Provider of Service Maintenance CAD User of Service HR HR - Maintenance 500 CAD 500 500 Machining 4,000 3,500 4,500 Assembly 5,000 4,000 1,500 Total 10,000 8,000 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: HR Maintenance CAD Variable $ 50,000 $ 80,000 $ 50,000 Fixed 200,000 150,000 300,000 Total $250,000 $230,000 $350,000 When Tampa Instrument Company established its service departments, the following long-run needs were anticipated.