The Barton Creek Company has three client-contact departments: Market Research,Branding,and Promotion.Each department requires the services of the Legal Department for the contracts that each undertakes.The size of the Legal Department was based on long-run estimates of contracts.Information on the Legal Department's budgeted and actual costs is as follows:
The budget for the Legal Department is $300,000 + $10/contract.The budgeted volume of contracts is as follows:
The actual number of contracts for Market Research was 315,for Branding was 450,and for Promotion was 720.Required (use three decimal places in your calculations):
a.If a single charging rate based on budgeted usage is used,how much of the cost of the Legal Department would be allocated to each of the producing departments?
b.If a dual charging rate is used,how much of the cost of the Legal Department would be allocated to each of the producing departments
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