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Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the papers two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 689,780 11 408,380 Advertising 1,340,920 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100 a. Using the direct method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest whole dollar. Amount allocated to Advertising: $Answer Amount allocated to Circulation: $Answer b. Using your answer to (a), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer c. Assuming that the benefits-provided ranking is the order shown in the table, use the step method to allocate the support department costs to the revenue-generating departments. Note: Round your final answers only to the nearest whole dollar. Amount allocated to Advertising: $Answer Amount allocated to Circulation: $Answer d. Using your answer to (c), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer e. Using the algebraic method, allocate the support department costs to the revenue-generating departments. Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%). Note: Round your final answer to the nearest whole dollar. Amount allocated to Advertising: $Answer Amount allocated to Circulation: $Answer f. Using your answer to (e), what are the total costs of the revenue-generating departments after the allocations? Advertising total costs $Answer Circulation total costs $Answer

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