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2. Goffinet Consultancy uses the direct method to allocate its service department costs to its operating departments. The company has two service departments, Information Technology
2. Goffinet Consultancy uses the direct method to allocate its service department costs to its operating departments. The company has two service departments, Information Technology and Administration, and two operating departments, Corporate Practice and Government Practice. Data concerning those departments follow: Service Department Information Admini- Technology stration $30,082 $39,760 28 16 23 15 Operating Department Corporate Government Practice Practice $589,000 $701,490 58 31 112 30 Departmental costs.... Computers. Employees Information Technology Department costs are allocated on the basis of computers and Administration Department costs are allocated on the basis of employees Required: Allocate the service department costs to the operating departments using the direct method (fill in the cost allocation table below) (5 POINTS) Service Departments Operating Departments Information Admini- Corporate Government Technology stration Practice Practice $30,082 $39,760 $589,000 $701,490 Departmental costs. Allocation: Information Technology .... Administration Total costs after allocation
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