Sportz, Inc , manufactures athletic shoes and athletic clothing for both amateur and professional athletes The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities however, both manufacturing facilities share the same support services for information technology and human resources The following shows costs (in thousands) for each manufacturing facility and for each support department Information Technology Human resources Clothing Shoes Total Cost Total Cost 5200 2800 21000 15000 44000 Number of IT Hous 6000 10080 7920 Number ofHR employees supported by departments 184 440 176 Number of IT labor hours worked by department are used to allocate IT department costs and number of employees supporting other departments are used to allocate human resources costs If reciprocal method is used to allocate cost of support departments to the clothing and shoes departments, then best equation used to describe the allocation of support departments costs

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Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are

Sportz, Inc., manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities; however, both manufacturing facilities share the same support services for information technology and human resources. The following shows costs (in thousands) for each manufacturing facility and for each support department

Information

Technology

Human resources

Clothing

Shoes

Total Cost

5200

2800

21000

15000

44000

Number of IT Hous

6000

10080

7920

Number ofHR employees supported by departments

184

440

176

Number of IT labor-hours worked by department are used to allocate IT department costs and number of employees supporting other departments are used to allocate human resources costs

If reciprocal method is used to allocate cost of support departments to the clothing and shoes departments, then best equation used to describe the allocation of support departments costs: