Question information:

• DP World paid Cdn$676 million to buy the container port called Fairview
• DP World spent an additional Cdn$200 million for an expansion that readied Fairview to accept the largest vessels at sea
• DP World's total investment was Cdn$876 million ($676 million purchase price + $200 million expansion cost).
• Of the $876 million invested by DP World into the Fairview container port, 95 percent ($788.4 million) was invested in the loading/unloading department assets and 5 percent ($43.8 million) was invested in the container decontamination department assets.
• The company expects the loading/unloading department to generate a Return of Investment (ROI) of 15% per year before tax over the planned 20-year life of the current equipment and expects the container decontamination department to generate an ROI of 7% per year before tax over the planned 25-year life of the current equipment.
• The total joint variable costs for loading/unloading in 2020 was $36.5 million.
• In 2020, the loading/unloading department for DP World's Prince Rupert facilities handled on average 3,600 of the 45-foot containers per day. In 2020, the container decontamination department for DP World's Prince Rupert facilities handled on average 400 of the 45-foot containers per day
• The port variable overhead costs are allocated to the operating departments using the direct method.
• The costs for 2020 show the various rates related to the Fairview Container port as follows:

1) Allocate the Variable Manufacturing Overhead to the two operating departments using the following information. (10 marks). Support Departments Operating Departments Port Information Loading / Container Maintenance Services Unloading Decontamination Total Budgeted Port Variable Overhead costs before any interdepartmental cost allocations $9,000,000 $1,200,000 $9,975,000 $265,000 $20,440,000 Support Work Furnished by: Port Maintenance Budgeted labour hours 116,800 408,800 58,400 584,000 Percentage 20.0%% 70.0% 10.0% 100.0% Information Services Budgeted Computer Hours 3,650 10,950 21,900 36,500 Percentage 10.0% 30.0% 60.0% 100.0% Create a tab named "Q1". Your answer should follow the following template. Hint - the Total for "Container Decontamination Department" is between: $2,400,000