Exercise $11-32($Algo$)$ Cost Allocation: Reciprocal Method $($LO $11-1)$

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:

$\backslash$table$[[,$IT$,$HR$,$Publishing,Binding$],[$IT tickets,$0,1,585,2,536,2,219],[$Employees$,20,0,30,50],[$Department direct costs,$$156,800,$$$249,030,$$$433,400,$$$398,500$