#2. (8 Marks) E-Mark, an online store, has two operating divisions - Corporate Sales and Consumer...

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#2. (8 Marks) E-Mark, an online store, has two operating divisions - Corporate Sales and Consumer Sales - and two support divisions Admin and IT. Each operating division operates independently. E-Mark uses number of employees to allocate Admin costs and processing time to allocate IT costs. The following data are available for the month: SUPPORT DEPT Admin OPERATING DEPT IT Corp Sales Cons. Sales Budgeted costs incurred before any interdivision allocations Admin budgeted # of employees deployed IT budgeted # of processing time deployed (minutes) $85,000 $200,000 $1,000,000 $500,000 300 20 40 40 2,000 1,700 Using the reciprocal method, allocate the support department costs. #2. (8 Marks) E-Mark, an online store, has two operating divisions - Corporate Sales and Consumer Sales - and two support divisions Admin and IT. Each operating division operates independently. E-Mark uses number of employees to allocate Admin costs and processing time to allocate IT costs. The following data are available for the month: SUPPORT DEPT Admin OPERATING DEPT IT Corp Sales Cons. Sales Budgeted costs incurred before any interdivision allocations Admin budgeted # of employees deployed IT budgeted # of processing time deployed (minutes) $85,000 $200,000 $1,000,000 $500,000 300 20 40 40 2,000 1,700 Using the reciprocal method, allocate the support department costs.

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