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The Dylap Corporation has two service centers: IS (information systems) and accounting. The service centers...

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Accounting

The Dylap Corporation has two service centers: IS (information systems) and accounting. The service centers provide services to one another as well as to the three operating divisions: Dysap, Dynap, and Dycap. The distribution of each service center's output as well as its costs (in millions) is given as follows:

IS Accounting DYSAP DYNAP DYCAP TOTAL COST
IS .15 .22 .23 .15 .25 $17.3
Accounting .04 .16 .38 .27 .15 $8.7
$26.0

1. Utilizing the Direct Allocation Method, how much of the IS and Accounting department costs would be allocated to the operating Division?

2. Utilizing the Direct Allocation Method with revised shares, how much of the IS and Accounting department costs would be allocated to the operating Division?

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