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The overhead costs of operating the support departments (Human Resources and Administration) at Creative Architects Pty Ltd are allocated to the revenue-generating departments (Commercial and

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The overhead costs of operating the support departments (Human Resources and Administration) at Creative Architects Pty Ltd are allocated to the revenue-generating departments (Commercial and Residential). Human Resources uses number of employees to allocate its costs, while Administration uses the dollar amount of assets employed to allocate. The allocated support department overhead costs are added to the revenue generating department's overhead costs and then applied to architectural projects. The following data relate to the allocation bases used and the direct costs of the company's departments: Department Number of employees Dollars of Assets Employed Overhead Costs Human Resources (Number of employees) 2 $100,000 $125,000 Administration ($s of assets employed) 3 $112,500 $375,000 Residential 10 $930,000 $600,000 Commercial 15 $620,000 $725,000 Use the direct method to allocate the support department overhead costs to the revenue-generating departments. How much is the total overhead cost of Residential Department after the allocation

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