Allrounded Security has two operations departments (Events Security, and Mobile Patrol), and two support departments...
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Accounting
Allrounded Security has two operations departments (Events Security, and Mobile Patrol), and two support departments (Human Resources (HR), Information Technology (IT)). Prior to allocation of any support department costs, the total cost of HR Department is $600,000, and the total cost of Information Technology department is $450,000. Allrounded Security uses the number of employees to allocate HR Departments costs, and the number of computer devices to allocate IT Departments cost. The following additional information is available:
Support departments
Operating departments
HR
IT
Event security
Mobile Patrols
Number of employees
5
8
12
20
Number of computer devices
6
20
15
24
Using the Step-Down Method of support cost allocation, what is the amount of IT cost allocated to Mobile Patrol?
a.$276,923
b.$64,000
c.350,769
d.$240,000
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