To allocate the assist prices utilizing the direct technique, we have to first calculate the allocation price for every base. The allocation price for F&T upkeep is $350,000 / 7,000 (complete hours) = $50 per hour. The allocation price for Enrollment Companies is $950,000 / 60,000 (complete credit score hours) = $15.83 per credit score hour.
Utilizing these charges, we will allocate the assist prices to every division as follows:
Division | F&T Upkeep (hours) | F&T Upkeep Price | Enrollment Companies (credit score hrs) | Enrollment Companies Price Engineering | 2,000 | 2,000 * $50 = $100,000 | 24,000 | 24,000 * $15.83 = $380,320 Pc Sciences | 5,000 | 5,000 * $50 = $250,000 | 36,000 | 36,000 * $15.83 = $571,880
Assist prices allotted to Engineering Division: $100,000 (F&T Upkeep) + $380,320 (Enrollment Companies) = $480,320 Assist prices allotted to Pc Sciences Division: $250,000 (F&T Upkeep) + $571,880 (Enrollment Companies) = $821,880
So, the assist prices allotted to Engineering Division is $480,320 and assist prices allotted to Pc Sciences Division is $821,880.