Data Analytics Department Allocation Calculation for Retail and Commercial Division

How much should each division be allocated for Data Analytics Department services?

Based on the data provided, what is the amount that should be allocated to the Retail Division and the Commercial Division for the Data Analytics Department services?

Answer:

The allocation for the Retail Division should be $85,000, and the allocation for the Commercial Division should be $255,000.

To calculate the allocation for each division for the Data Analytics Department services, we need to determine the cost per hour for the department.

First, let's calculate the cost per hour:

Cost per hour = Total expenses / Total hours of service

Cost per hour = $340,000 / 8,000 hours

Cost per hour = $42.50

Now, let's calculate the allocation for each division:

For the Retail Division:

Allocation for Retail Division = Cost per hour x Hours used by Retail Division

Allocation for Retail Division = $42.50 x 2,000 hours

Allocation for Retail Division = $85,000

For the Commercial Division:

Allocation for Commercial Division = Cost per hour x Hours used by Commercial Division

Allocation for Commercial Division = $42.50 x 6,000 hours

Allocation for Commercial Division = $255,000