The centralized employee travel department of Croce Company has expenses of $724,000. The department has serviced a total of 5,000 travel reservations for the period. The South Division made 2,850 reservations during the period, and the West Division made 2,150 reservations.
How much should each division be charged for travel services?
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division used 2,750 hours of computer technology service during the period, and the Commercial Division used 1,250 hours of computer technology service.
How much should each division be charged for computer technology department services?