Woodstock Binding has two service departments, IT $($Information Technology$)$ and HR $($Human Resources$),$ and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets $($issued with each IT request$)$ in each department and HR costs on the basis of employees in each department.

The following data appear in the company records for the current period:

IT tickets

Employees

Department direct costs

II

$\backslash$table$[[$IT$,$HR$,],[,0,1,500],[16,,0],[$$$154,000,$$$264,600,]]$

Publishing

$1,500$

$$430,000$

Binding

$4,500$

$40$

$$390,000$

Required:

Use the step method to allocate the service costs, using the following:

a$.$ The order of allocation starts with IT$.$

b$.$ The order of allocation starts with HR$.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Use the step method to allocate the service costs, using the following:

The order of allocation starts with $.$

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.

$\backslash$table$[[$From:$,,$Cost Allocation To:$],[,,$IT$,,$HR$,$Publishing,Binding$],[$Service department costs,,$$,154,000,$$$,264,600,$$$430,000ox,390,000$prop