Return to the direct method of cost allocation and use the same cost drivers as specified in

Problem 6.4 for the general administration and facilities departments.

However, assume tat

$2,000,000 of financial services costs is related to billing and managerial reporting and

$1,000,000 is related to payroll and personnel management activities.

a. Devise and implement a cost allocation scheme that recognizes that the financial services

department has two widely different functions