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XYZ Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on

  1. XYZ Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department. (2marks)

Required:

  1. Give a numerical example for the four departments, given the table below, (the numerical information should be appropriate as per the table given as a reference.

Support Departments

Operating Departments

TOTAL

Human Resource

Information Technology

Hot Rolled Hollow Steel

cold Rolled Hollow Steel

Total department cost

Number of employees

Number of machine hours

b- Then based on your given information, use The Direct method to allocate support department costs.

Allocate cost:

Human Resource

Information Technology

TOTAL

I want a professional way by writing, I do not want pictures or papers

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