Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

7. Sympson company has two support departments and two operating departments. For the year 2019 the following information were available: Total 2.84.000 8000 (100%) Support

image text in transcribed
7. Sympson company has two support departments and two operating departments. For the year 2019 the following information were available: Total 2.84.000 8000 (100%) Support departments Operating Departments Budgeted Financial Information Government Corporation overhead (FIN) Technology Consulting Consulting cost before (IT) allocation 60,000 24,000 80,000 1.20,000 Support 2000 3200 2800 work by (25%) (40%) (35%) FIN (Allocation base and percentage) Support 200 600 1200 work by IT (10%) (30%) (60%) (Allocation base and percentage) 2000 (100%) Required: Allocate two support departments cost to the two operating departments by using i) Direct method ii) Step-down method Reciprocal method Show calculations and make the tables of allocated costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit Of Treasury And Cash Management

Authors: Badr Bentalha

1st Edition

B0BM3R6WG7, 979-8363213779

More Books

Students also viewed these Accounting questions