(8) Top Urgent please (answer using keyboard)

Question 8

Khaled Inc. has two support departments (utilities and information system) and two operating departments (A and B). The base of allocation of support department costs are: number of employees for Utility Department and number of computers for Information system department. The following data are given:

	Support Departments		Operating Departments
	Utilities	Information system	Operating department A	Operating department B	Total
Costs	SR 55,000	SR 75,000	SR 127,000	SR 106,000	SR 363,000
Number of employees		25	35	40	100
Number of Computers	15		55	30	100

Required:

• Allocate the support department costs and calculate the total costs of the operating departments unsing the direct method.