Question
Superman Store has two support departments, Information Systems and Personnel. The Information Systems Department costs are allocated on the basis of hours used. The Personnel
Superman Store has two support departments, Information Systems and Personnel. The Information Systems Department costs are allocated on the basis of hours used. The Personnel Department costs are allocated based on the number of employees. Data on information systems hours used and number of employees are as follows:
Information
Allocation Bases: Systems Personnel Fruit Nut
Total cost $120,000 $30,000 $60,000 $90,000
Information systems hours used 600 600 720 480
Number of employees 10 20 40 120
What is the cost of the Information Systems Department allocated to Fruit using the direct method?
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