Required:

a$.$ Compute the cost allocated to each unit using the current allocation system.

b$.$ The manager of the Detroit office believes that Detroit gets little benefit from the personnel office other than the occasional hire and termination help. The manager asks the controller's office to estimate the amount of Personnel Department cost associated with routine personnel matters $($benefits and so on$)$ and those associated with hiring employees and assisting with departing employees $($transitions$).$ The controller responds that if they separated the overhead costs on this basis, the cost of the Personnel Department for routine matters is $\backslash (\backslash$$ $264,000\backslash )$ and the cost of the Personnel Department for transitions $($each hire and each departure counts as one transition$)$ is $\backslash (\backslash$$ $246,000\backslash ).$

Recompute the costs allocated to each unit using the separate rates for routine and transitional matters.