The Faculty of Business at Dunelm University has two central service departments: Human Resources and Finance. The Human Resources Department has an annual budget of 300,000 and the Finance Department has an annual budget of 500,000. The faculty has three operational departments: Accounting, Economics, and Management & Marketing (M&M).

The cost of the Human Resources service department is to be apportioned to the other departments using the number of staff in these departments as the apportionment base.

The cost of the Finance service department is to be apportioned to the other departments using the number of transactions processed by the Finance department on behalf of other departments as the apportionment base.

The following information relating to these apportionment bases is available:

Human Resources Finance Accounting Economics Number of staff Number of transactions What level of overheads should be apportioned to the Economics department? You should fully recognise any reciprocal services and round to the nearest pound at all times