Woodstock Binding has two service departments, IT (Information Technology) and HR (Human Resources), and two operating departments, Publishing and Binding. Management has decided to allocate IT costs on the basis of IT Tickets (issued with each IT request) in each department and HR costs on the basis of employees in each department. 

The following data appear in the company records for the current period: 

Required

Use the direct method to allocate these service department costs to the operating departments.

Transcribed Image Text:

IT Tickets. Employees Department direct costs.. IT Publishing Binding 2,400 2,100 16 24 40 $150,000 $247,500 $430,000 $390,000 HR 1,500 -