Reference no: EM131809164

Question - Tyler Corporation has two service departments, IT Department and HR Department, and two producing departments, A and B. The IT Department costs of $70,000 are allocated on the basis of standard service hours used. The HR Department costs of $14,000 are allocated on the basis of number of employees. The direct costs of Departments A and B are $11,000 and $42,000, respectively. Data on standard service-hours and number of employees are as follows:

IT Dept.

HR Dept.

Dept. A

Dept. B

Standard service hours used 100 200 750 250

Number of employees 6 12 30 30

Using the direct method, calculate the cost of the HR Department allocated to Department A.