The Flounder Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research departments costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration departments costs are allocated based on the number of employees in each department.

Records are available for last period as follows:

		Support						Operating
		Departments						Departments
		Research			Administration			Institutional			Retail
Payroll costs		$	373,800		$	275,900		$	407,000		$	559,900
Other costs		$	220,810		$	148,900		$	124,950		$	227,850
Research hours			100			200			500			300
Number of employees			6			10			9			10

Using the reciprocal method, determine the total cost of operations for each sales division. Use either simultaneous equations or Excel Solver. (Round all entries to whole amounts, e.g. 5,275.)

			Support								Operating
			Departments								Departments
			Research				Administration				Institutional				Retail				Total
Allocation bases:
	Research hours
					%				%				%				%				%
	Number of employees
					%				%				%				%				%
Total department costs:			$				$				$				$				$
Cost allocations:
	Research
	Administration
Total allocated cost			$				$				$				$				$