Q. RCR has two support departments, X1 and X2, and two operating departments, Z1 and Z2. RCR has decided to use the direct method and allocate variable X1 dept. costs based on the number of transactions and fixed X1 dept. costs based on the number of employees. X2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided:
| Support Departments | Operating Departments | |||
| X1 | X2 | Z1 | Z2 | |
| Total Department variable costs | 12,500 | 15,000 | 95,000 | 52,500 |
| Total department fixed costs | 14,500 | 27,500 | 105,000 | 45,000 |
| Number of transactions | 38 | 45 | 175 | 112 |
| Number of employees | 14 | 18 | 38 | 30 |
| Number of service requests | 30 | 18 | 38 | 25 |
| Number of computers | 15 | 20 | 25 | 30 |
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Variable and Fixed Costs
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You are required to allocate the variable and fixed costs.
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