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and information systems (Click the icon to view the stap down allocation data) Human Information Corporate Consumer Alocation
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Answer #1

Allocation Rates:

Human resource Information system corporate sales consumer sales
Human resource (21+42+28=91] 21/91=.23077 42/91= .46154 28/91=.30769
Information system (320+1920+1600=3840) 320/3840=.08333 1920/3840=.50 1600/3840= .41667

Let the total cost of Human resource department be "X" and that of Information system be "Y"

X = 72700 + .08333 Y             [Equation 1]

Y = 234400+ .23077 X

Putting the value of X from equation 1

Y= 234400 +.23077 [72700+.08333Y]

Y= 234400+ 16776.98+ .01923 Y

Y - .01923 Y =   251176.98

.98077 Y= 251176.98

Y= 251176.98 /.98077

= 256101.82 (rounded to 256102)

Total cost of information system = 256102

Total cost of Human resource : X = 72700 + .08333 Y

                                            = 72700 +.08333*256102.

                                            = 72700 + 21341

                                            = 94041

Human resource Information system corporate sales consumer sales
Direct cost 72700 234400 998270 489860
Allocation from human resource (94041) (94041) .23077*94041=21702 .46154*94041=43404 .30769*94041=28935
Allocation from information system(256102) .08333*256102=21341 (256102) .50*256102=128051 .41667*256102= 106710
Total 0 0 1169725 625505
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