Allocations and decision making (LO2). Refer to Exercise 16.24. Suppose you have determined that,…

 Allocations and decision making (LO2). Refer to Exercise 16.24. Suppose you have determined that, after allocating the support department costs, the final costs in the P&R Department pool equal $473,000 and that the final costs in the FM Department pool equal $500,000. (Please note that these numbers differ from the answers to Exercise 16.24) The P&R Department offered a total of 18,920 hours of instruction. What is the City’s total cost per instruction hour provided by the P&R department? How might the city use this information for decision making? Exercise 16.24: 16.24 Direct method (LO2). The City of Pleasantville has two line departments—Parks and Recreation (P&R) and Facilities Maintenance (FM)—that provide services to its citizens. The P&R Department offers many programs in art, culture, and athletics, while the FM Department maintains all of the streets, buildings, and other public facilities. Behind the scenes, Pleasantville has two departments that support the activities of the P&R and FM departments. The Human Resources Department processes payroll and oversees all hiring, development, and training. The General Administration Department provides overall coordination and managerial support. The following table provides data regarding the consumption of services by the four departments, as well as the initial costs traced to each department. Required: Allocate the costs of the two support departments (human resource and general administration) to the line departments using the direct method. What are the final balances (total costs) in the cost pools?

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