Reference no: EM132515606

Realty Company allocates common Building Department costs to producing departments (A and B) based on space occupied, and it allocates common Personnel Department costs based on the number of employees.

Space occupancy and employee data are as follows:

                                                  Building                           Personnel                        Dept. A                         Dept. B

Space occupied                    100 ft.                    5,000 ft.                         12,000 ft.                    3,500 ft.

Employees                              3                                   5                                 45                               30

Question 1: If Realty Company uses the direct allocation method, the ratio representing the portion of Personnel costs allocated to Department A is