Lombardi Printing has two support departments (administration and editorial) and two operating divisions (college texts and professional publications).
Following are the direct costs and allocation bases for each of these areas:

Company management has decided to allocate administration and editorial costs using dollars of assets employed and number of employees, respectively. Use the algebraic method to allocate the support department costs and determine the total operating costs of college textbooks and professionalpublications.

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ALLOCATION BASES Number of Department Administration Editorial College texts Professional publications Direct Costs Assets Employed mployees $310,000 75,000 600,000 525,000 s 225,000 175,000 2,250,000 950,000 4 25 15