Prestige Financial Credit Company Produces Two Styles of Credit Reports

Essay

Prestige Financial Credit Company produces two styles of credit reports: Individual and Corporate.The difference between the two is the amount of background information and data collection required.The Corporate report uses more skilled personnel because additional checking and data are required.The relevant figures for the year just completed follow.Total support service costs to be allocated are $3,200,000. $$\begin{array} { | l | r | r | } \hline \text { Allocation base } & \text { Indlvidual } & \text { Corporate } \\\hline \text { Data purchased } & \$ 40,000 & \$ 80,000 \\\hline \text { Research hours } & 24,000 & 30,000 \\\hline \text { Interview hours } & 1,000 & 10,000 \\\hline \text { Number of reports } & 16,000 & 3,000 \\\hline\end{array}$$ Required:
For each of the four potential allocation bases,determine the amount of support-service cost allocated to each type of report.Round all percentages to two decimal places.