XYZ Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine hours in each department. (2marks)
Give a numerical example for the four departments, given the table below, (the numerical information should be appropriate as per the table given as a reference.
Hot Rolled Hollow Steel
cold Rolled Hollow Steel
Total department cost
Number of employees
Number of machine hours
b- Then based on your given information, use The Direct method to allocate support department costs.
For what types of products is the physical output method appropriate? Give suitable and real example that should support your answer. ch9 (1mark)