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Alpha Pty Ltd provided the following information of its material management support department:
Budgeted usage of materials-handling labour-hours (used as the cost allocation base) is 3380
Budgeted cost pools are given as:
Fixed costs $150872
Variable costs 3380 hours x $35 per materials-handling labour hour
The company uses the single-rate method to allocate support costs to the Machining and Assembly Departments. The allocation of these costs is based on the budgeted rate and the actual materials-handling labour-hours. Assuming that the actual materials-handling labour-hours tracked in the Machining and Assembly department are 521 for the month of August, compute the support costs that would be allocated to both the Machining and Assembly Department for the operations of the month of August.
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