Q 1 Fadel, Inc. allocates engineering costs on the basis of the supervisors time and administration costs on the basis of the number of employees.

The following data have been collected:

Support Departments Operating Departments

Engineering Administration Operating 1 Operating 2

Department costs $25,000 $15,000 $200,000 $350,000

Number of employees 15 10 300 450

Engineering supervisors time 30 hours 15 hours 35 hours 20 hours

Use the direct method to allocate support department costs to the different departments.