PR $6-2($Algo$)($LO $6\mathrm{.}1,6\mathrm{.}3)$ Posh Bakery has two support departments...

Posh Bakery has two support departments, machine maintenance $($MM$)$ and human resources $($HR$).$ Machine maintenance costs for the

year total $$532,000$ and are allocated according to the number of budgeted machine hours expected for each department. HR costs

for the year total $$232,000$ and are allocated based on employee head count. Use the data below to allocate support department

costs to Posh Bakery's two production departments: Pies and Cakes.

Required:

Prepare a schedule that allocates support department costs using the direct method. Compute the total amount of support costs

allocated to each operating department: Pies and Cakes.