a) Direct Method

S1: Support Departments: M P S G

Producing Departments: A B
S2: M-Base M: Maintanence
-Base B: Transaction Processed
S3: A - C D
B- C D
S4: A Base C/Base C+Base D Base D/Base C+bBase D
70200/(70200+46800) 46800/(70200+46800)
0.6 0.4
B Base C/Base C+Base D Base D/Base C+Base D
24700/(24700+13300) 13300/(24700+13300)
0.65 0.35
C D
A 0.6 0.4
B 0.65 0.35
S5: A B C D
Ovehead Co 600000 1800000 800000 1500000
A 600000 360000 240000
B - 270000 175500 94500
Total 0 1530000 1335500 1834500
aa bb cc dd a
A B 600000 1800000 800000 1500000 1000000
AA 1/3 2/3 aa 200000
BB 4/9 5/9 bb 800000
CC 1/4 3/4 total 200000
DD 5/9 4/9 800000
3000000
6900000
b) Sequential Method
S1: Support Departments: A B (A: Delivery B: Accounting)
Operating Departments: C D (C: Laboratory D: Tissue Pathology)
S2: A-Base A: Number of samples
B-Base B: Transaction Processed
S3: B- A C D (Becase Cost B>Cost A)
A' - - C D
S4: B Base A/(BaseA+BaseC+BaseD) Base C/(BaseA+BaseC+BaseD) Base D/(BaseA+BaseC+BaseD)
2000/(2000+24700+13300) 24700/(2000+24700+13300) 13300/(2000+24700+13300)
0.05 0.6175 0.3325
A' - Base C/(BaseC+BaseD) Base C/(BaseC+BaseD)
70200/(70200+46800) 46800/(70200+46800)
0.6 0.4
A C D
B 0.05 0.6175 0.3325
A' - 0.6 0.4
S5: B A C D
Overhead Cost 1800000 600000 800000 1500000
B 1800000 90000 1111500 598500
A' - 690000 414000 276000
Total 0 0 2325500 2374500
b Base A/(BaseA+BaseC+BaseD)
1200000 B A/(BaseA+BaseC+BaseD)
400000
1000000
600000
700000
3900000
 (Becase Cost B>Cost A)

aseA+BaseC+BaseD)
000+24700+13300)

aseC+BaseD)
0200+46800)