CONFIDENTIAL

QUESTION $6(14$ marks; $25\mathrm{.}2$ minutes$)$

$2$ Military Hospital's Testing Division is divided into two operating departments: Laboratory and Tissue Pathology. The Division allocates delivery and accounting costs to each operating department. Delivery costs include the costs of a fleet of vans and drivers that drive throughout the province each day to Sick$-$bays to pick up samples and deliver them to the hospital. Delivery costs are allocated on the basis of number of samples. Accounting costs are allocated on the basis of the number of transactions processed. No effort is made to separate fixed and variable costs; however, only budgeted costs are allocated.

Allocations for the coming year are based on the following data:

$\backslash$table$[[,$Support Departments,Operating Departments,$],[,$Delivery,Accounting,Laboratory,Pathology$],[$Overhead costs,R$2400000,$R$2700000,$R$3450000,$R$4560000],[$Number of samples,$-,-,70200,46800],[$Transactions processed,$2000,-,24700,13300]]$

Required:

$6\mathrm{.}1$ Assign the support department costs by using the reciprocal method. $($Note: Round allocation ratios to four decimal plades$).$