A housekeeping support department budgets its costs at $40,000 per month plus $12 per hour. For November the following were the estimated and actual hours provided by the housekeeping support department to three operating departments.

REQUIRED
A. What is the support department€™s allocation rate if estimated activity is the allocation base?
B. What is the support department€™s allocation rate if actual activity is the allocation base?
C. List one advantage and one disadvantage for each type of allocationrate.

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Department A Department B Department C Total Estimated Hours Spent Cleaning 1,600 1,400 2,000 5,000 Actual Hours Spent Cleaning 1,500 1,600 1,800 4,900