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0240/mod resource/content/6/Handout%20Problem%2007.pdf MANAGERIAL ACCOUNTING HANDOUT PROBLEM 7 Score Name Section Problem (10 points). I and North Carolina Airlines uses a centralized computer system for use
0240/mod resource/content/6/Handout%20Problem%2007.pdf MANAGERIAL ACCOUNTING HANDOUT PROBLEM 7 Score Name Section Problem (10 points). I and North Carolina Airlines uses a centralized computer system for use in reservations, scheduling flights d personnel, maintenance schedules, and accounting. Costs of using the computer are charged to individual departments based upon time used. The company is contemplating the use of a dual allocation rate rather than the single allocation rate that it currently uses. The attached information is available for estimated usage of computer resources for the upcoming fiscal quarter. The costs of operating the computer system are estimated to be as follows: $3,750,000 for costs related to processing and $1,400,000 for costs related to storage capacity. REQUIRED: (1) (2) Allocate the costs of the computer system to the various departments using a single rate with processing time used as the allocation base. Round your rate to four decimal places and all other dollar amounts to the nearest whole dollar Allocate the costs of the computer system to the various departments using a dual rate, with costs related to processing allocated using processing time used as the allocation base and costs related to storage capacity allocated using storage capacity used as the allocation base. Round your rates to four decimal places and all other dollar amounts to the nearest whole dollar. acer NORTH CAROLINA AIRLINES ESTIMATED USAGE OF COMPUTER RESOURCES FOR UPCOMING FISCAL QUARTER Processing Time Used Storage Capacity Used Department (in Milliseconds) (in Megabytes) Reservations 3,200 1,250 Scheduling 1,800 750 Maintenance 7,200 250 Accounting 2,800 550
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