The Marlin Hotel has two centralized support divisions, IT and Human resources (HR), and two major product divisions: Rooms and Suites. The hotel allocates the cost of HR based on head count and IT on number of IT hours. The following data pertain to usage patterns for the current period:

		IT	HR	Rooms	Suites
Costs incurred		$400,000	$250,000	$600,000	$750,000
Service provided by
IT			500	500	1500
HR		15		55	45
Number of Units				520	140

The hotel uses the reciprocal method to allocate the costs of support departments to functional divisions.

Required:

a. What will be the cost of IT per IT hour charged to the functional divisions?

b. What will be the cost of human resources per head count charged to the functinal divisions?

c. What is the total cost per unit in the rooms division? Suites?