Consider the following data for two of Hawk's production departments, Shampoo and Soap, and two of its support departments, Maintenance and Information Systems.

Required:
Allocate the support department costs (maintenance and information systems) to the production departments using the direct method. What are the final balances (total costs) in the Shampoo and Soap cost pools?

Transcribed Image Text:

Information MaintenanceSystems Initial cost in pool$800,000 Maintenance Information Systems Shampoo $2,000,000 40% 50% Soap $1,5000,000 40% 30% $500,000 20% 20%