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E-Mark, an online store, has two operating divisions - Corporate Sales and Consumer Sales -...

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Accounting

E-Mark, an online store, has two operating divisions - Corporate Sales and

Consumer Sales - and two support divisions -Admin and IT. Each operating division operates

independently. E-Mark uses number of employees to allocate Admin costs and processing time

to allocate IT costs. The following data are available for the month:

SUPPORT DEPT OPERATING DEPT

Admin IT Corp Sales Cons. Sales

Budgeted costs incurred before

any interdivision allocations $85,000 $200,000 $1,000,000 $500,000

Admin budgeted # of employees

deployed 20 40 40

IT budgeted # of processing time

deployed (minutes) 300 2,000 1,700

Using the reciprocal method, allocate the support department costs.

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