Housekeeping had 100000 in direct costs during 2007. These costs must be allocatedto 3 revenue-producing depts using the direct method. 2 cost drivers are
under considerationservices revenue and hours of housekeeping services used. The revenue service dept generated $5million in total revenues during 2007 to
support these activities they used 5000 hours of housekeeping services.
a. What is the value of the cost pool?
b. What allocation rate if: services revenue is used as the cost driver?
: hours of housekeeping services is used as the cost driver?