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CoursHeroTranscribedText: Additional Information: HQ Direct Labour 0 Processing Ti 0 Headcount (e 8 Floorspace (s 13,005 Overhead Co 4,901,398 HR Building 0 0 0 0 7 35 2,200 19,600 777,199 9,198,554 Repair + Chemical Overhaul Manufacturing Treating 225,000 237,422 0 0 0 1,820 180 350 3 540,000 360,000 28,483 16,179,253 33,923,386 845,325 ADM3346 Assignment 5 Cost allocations Due Date: 11:59pm Tuesday June 22 Kay and Dee Manufacturing (K+D) has three business lines: Repair and Overhead (R+O): Repair of truck transmissions. Manufacturing: manufacturing of custom truck transmission parts Chemical Treating: cleaning of old parts They also have three support departments. Major activities of each department are: Human Resources (HR): Payroll, HR staff, employee services, Union/Management relations. Costs for this service department are allocated based on Headcount. Facility: buildings, building maintenance and related building costs. Costs for this service department are allocated based on area occupied. Main Ofce (HQ): salaries for the President, VP, and Finance department. Costs for this service department are allocated based on Direct LabOur hours. Other financial information is in Appendix A. REQUIRED: 1. Briefly comment on the cost drivers for the support departments. (jg. Do you think they are appropriate, or can you recommend something better?) Using the Direct Method, allocate overhead costs from the support departments to the business lines. Using the Step-down method, allocate overhead costs from the support departments to the business lines in the following order: 1'5t Building 2mi HR 3"1 HQ Using the Reciprocal Method, allocate overhead costs from the support departments to the business lines

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