Question
San Diego Accents is an interior design firm that specializes in office planning. The design firm consists of two distinct services: Sketching and Installation. There
San Diego Accents is an interior design firm that specializes in office planning. The design firm consists of two distinct services: Sketching and Installation. There are also support functions for the San Diego Accents that are separated into two departments: Office and Technology Support. Office encompasses all the expenses associated with the office support necessary to run the business. Technology Support includes any expenses associated with the computer systems required to operate the business as well as those used to sketch and install the designs. Cost data for the services and the support functions are as follows:
Technology Support
$21,000
Office
$16,000
Sketching
$46,695
Installation
$60,305
Total
$144,000
The Office and Technology Support costs are allocated based on the service hours. The departments receive the following percentage of service hours from the departments:
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