Stuffed Animal Emporium - Production and Service Department Allocation Worksheet
Department	Budgeted Office Hours	Budgeted Sales Visits	Budgeted OH
General Office Support	75		$225,000
Marketing	325		$465,000
Accounting	450		$285,500
Horses and Unicorns	900	30	$75,000
Teddy Bears	8,000	210	$305,229
Dinosaurs	250	10	$30,000
Zoo Animals	15,000	500	$257,972
Direct Method					Sequential Method
Step 1: Use the Direct Method					Step 1: Use the Sequential Method
Step 2: Calculate total costs and total drivers					Step 2: Calculate total costs and total drivers
	General Office Support	Marketing	Accounting			General Office Support	Accounting	Marketing
Total Costs	$225,000	$465,000	$285,500		Total Costs	$225,000	$289,562	$586,753
Total Drivers (Production Only)					Total Drivers
Horses and Unicorns	900	30	$75,000		Marketing	325	$465,000
Teddy Bears	8,000	210	$305,229		Accounting	450
Dinosaurs	250	10	$30,000		Horses and Unicorns	900	$75,000	30
Zoo Animals	15,000	500	$257,972		Teddy Bears	8,000	$305,229	210
Total	24,150	750	$668,201		Dinosaurs	250	$30,000	10
	# office hours	# of sales visits	Budgeted OH		Zoo Animals	15,000	$257,972	500
					Total	24,925	$1,133,201	750
						# office hours	# of sales visits	Budgeted OH
Step 3: Calculate the % used by each department					Step 3: Calculate the % used by each department
Horses and Unicorns	4%	4%	11%		Marketing	1%	41%
Teddy Bears	33%	28%	46%		Accounting	2%
Dinosaurs	1%	1%	4%		Horses and Unicorns	4%	7%	4%
Zoo Animals	62%	67%	39%		Teddy Bears	32%	27%	28%
					Dinosaurs	1%	3%	1%
					Zoo Animals	60%	23%	67%
Step 4: Allocate support costs to each department					Step 4: Allocate support costs to each department
	General Office Support	Marketing	Accounting	Total Support Costs Allocated		General Office Support	Accounting	Marketing	Total Support Costs Allocated
Horses and Unicorns	$8,385	$18,600	$32,045	$59,030	Marketing	$2,934	$118,820
Teddy Bears	$74,534	$130,200	$130,414	$335,148	Accounting	$4,062
Dinosaurs	$2,329	$6,200	$12,818	$21,347	Horses and Unicorns	$8,124	$19,164	$23,470	$50,759
Zoo Animals	$139,752	$310,000	$110,223	$559,974	Teddy Bears	$72,217	$77,994	$164,291	$314,501
Total Costs	$225,000	$465,000	$285,500	$975,500	Dinosaurs	$2,257	$7,666	$7,823	$17,746
					Zoo Animals	$135,406	$65,919	$391,169	$592,494
					Total Costs	$225,000	$73,584	$398,992	$975,500
Step 5: Divide allocated costs by the units produced to get the cost/unit					Step 5: Divide allocated costs by the units produced to get the cost/unit
	Horses and Unicorns	Teddy Bears	Dinosaurs	Zoo Animals		Horses and Unicorns	Teddy Bears	Dinosaurs	Zoo Animals
Support Costs Allocated	$59,030	$335,148	$21,347	$559,974	Support Costs Allocated	$50,759	$314,501	$17,746	$592,494
Units Produced	10,000	81,000	2,500	197,000	Units Produced	10,000	81,000	2,500	197,000
Support Cost/unit	$5.90	$4.14	$8.54	$2.84	Support Cost/unit	$5.08	$3.88	$7.10	$3.01	a.)What is the total amount of administrative overhead (support costs) that needs to be allocated between the two lines given general office support is one pool called "sales support" and the other is human resources, accounting, and finance into another pool called "financial support." I need to know the support costs needed to be allocated between the two lines.