e. Using the algebraic method, allocate the support department costs to the revenue-generating departments. Enter the total amount of service department costs (Administration and Human Resources) allocated to revenue-generating departments (Adverting and Circulation). Note: Round percentages in your calculation to the nearest whole percent (for example, round 34.5% to 35%).

Total service costs allocated to Advertising: $_______

Total service costs allocated to Circulation: $_______

f. Using your answer to (e), what are the total costs of the revenue-generating departments after the allocations?

Advertising total costs $_______

Circulation total costs $________

Comprehensive support department allocations Management at C. Pier Press has decided to allocate costs of the paper's two support departments (administration and human resources) to the two revenue-generating departments (advertising and circulation). Administration costs are to be allocated on the basis of dollars of assets employed; human resources costs are to be allocated on the basis of number of employees. The following costs and allocation bases are available: Department Direct Costs Number of Employees Assets Employed Administration $1,094,100 14 $541,940 Human resources 11 408,380 689,780 1,340,920 Advertising 17 1,067,360 Circulation 1,893,640 36 2,618,420 Totals $5,018,440 78 $4,636,100