Rose Richard Company has two products. Product 1 is manufactured entirely in Department X. Product 2 is manufactured in Department Y. To produce these two products the Rose Richard Company has two support departments. Material Handling Department and Power Generating Department. An analysis of the work done by Material Handling and Power Generating Department in a typical period follows: Used By Supplied by Material Handling Power generating Material Handling Power Generating Department X 150 Department Y 225 480 375 600 120 The work done by Material Handling Department is measured by the direct labor hours of material handling time. The work done by Power Generating Department is measured by the kilowatt hours per hour. The budgeted costs of the support department for the coming year are as follows: Material Handling Power Generation $105,000 Variable indirect labor and indirect material $12,000 costs $12,000 $24,000 $48,000 Supervision Depreciation Total Costs $15,000 $30,000 $150,000 The budgeted costs of the operating departments for the coming year are $2,250,000 for Department X and $1,200,000 for Department Y.