Service Department Charges The centralized employee Travel Department of Vital Company has expenses of $414,700. The department has serviced a total of 14,300 travel reservations for the period. The South Division has made 7,722 reservations during the period, and the West Division has made 6,578 reservations. How much should each division be charged for travel services? Do not round interim calculations. South Division $ West Division $

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...
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Service Department Charges

The centralized employee Travel Department of Vital Company has expenses of $414,700. The department has serviced a total of 14,300 travel reservations for the period. The South Division has made 7,722 reservations during the period, and the West Division has made 6,578 reservations.

How much should each division be charged for travel services? Do not round interim calculations.

South Division $
West Division $
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