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The Windsor Company makes wheels and wings for ground transport vehicles and drones. In addition to the key manufacturing departments, Windsor needs two key support
The Windsor Company makes wheels and wings for ground transport vehicles and drones. In addition to the key manufacturing departments, Windsor needs two key support services, provided by its Maintenance and IT departments. The Maintenance costs are allocated to other departments based on the square footage of space each department occupies. The IT department allocates its costs to other departments based on the amount of time the IT employees spend assisting the other departments. The cost information of all four departments, along with their usage information for both allocation bases, is as follows. Support Departments Operating Departments Maintenance IT Initial cost $117,000 $80,000 Wheels $448,000 Wings Totals $644,000 $1,289,000 Square feet occupied 1,200 2,200 2,640 6,160 12,200 IT labor hours used 1,000 3,135 2,365 6,500 (a) Allocate the support department costs using the direct method to determine the total costs for which each operating department should be accountable. Operating Departments Total $ Wheels Wings Total costs $ $
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