The IT department has an annual expense of $35 million, most of it in salaries
Currently, it is charged to divisions based on total headcount. Look at the data below and apply the ABC concepts to recommend an allocation of the
IT costs to the four divisions Explain your choice of the basis for allocation.
Total IT Engineering costs				# hours spent by IT (from time sheets)
		headcount	Annual budget		Total square footage occupied
Product
Sales		2 000	400 000 000	5 000	200 000
Marketing		500	300 000 000	7 000	125 000
Operations		1 500	280 000 000	4 000	185 000
Research and Development		900	420 000 000	4 000	160 000