Question

Kumar, Inc., evaluates managers of producing departments on their ability to control costs. In addition to the costs directly traceable to their departments, each production manager is held responsible for a share of the costs of a support center, the Human Resources (HR) Department. The total costs of HR are allocated on the basis of actual direct labor hours used. The total costs of HR and the actual direct labor hours worked by each producing department are as follows:

	Year 1	Year 2
Direct labor hours worked:
Department A	24,000	25,000
Department B	38,000	25,000
Total hours	62,000	50,000
Actual HR cost	$117,400	$117,400
Budgeted HR cost	112,400*	110,000*

*$0.20 per direct labor hour plus $100,000.

When the capacity of the HR Department was originally established, the normal usage expected for each department was 15,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2.

Required:

1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing.

	Department A	Department B
Variable costs	$fill in the blank 1	$fill in the blank 2
Fixed costs	fill in the blank 3	fill in the blank 4
Total cost	$fill in the blank 5	$fill in the blank 6

2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.

	Year 1			Year 2
	Department A	Department B		Department A	Department B
Variable costs	$fill in the blank 7	$fill in the blank 8		$fill in the blank 9	$fill in the blank 10
Fixed costs	fill in the blank 11	fill in the blank 12		fill in the blank 13	fill in the blank 14
Total cost	$fill in the blank 15	$fill in the blank 16		$fill in the blank 17	$fill in the blank 18

Please I need an answer ASAP!!