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:
• Question 1:
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• Question 2:
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• I would appreciate if you could help me to solve these two questions.

Total Costs Totals 3,600 Load / Unload Powered Units 800 $25.00 $48.00 Load / Unload Non- Powered Units 2,400 $8.00 $32.00 Container Decontamination 400 $5.00 $5.00 Containers per day DM Costs per Container DML Costs per Container Variable Manufacturing Allocated Variable Joint Costs (Physical Measure to Load/Unload only) Fixed costs per container Period Operating costs per Year $36,500,000.00 $30.75 Sz. 117,000 $30.75 56,351.000 $10.00 $1,450,000 $9.928,000 1) Allocate the Variable Manufacturing Overhead to the two operating departments using the following information. (10 marks). Support Departments Port Information Maintenance Services Operating Departments Loading/ Container 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 Percentage Information Services Budgeted Computer Hours Percentage 116,800 20.0% 408,800 70.0% 58,400 10.0% 584,000 100.0% 3,650 10.0% 10,950 30.0% 21,900 60.0% 36,500 100.0% Create a tab named "Q1". Your answer should follow the following template. Hint - the Total for "Container Decontamination Department" is between: $2,400,000