Question
ABC incorporation has two support departments, Administration department and Information Technology department and two operating departments, Assembly department and Finishing department. Company allocates administration costs
ABC incorporation has two support departments, Administration department and Information Technology department and two operating departments, Assembly department and Finishing department. Company allocates administration costs on the basis of the number of employees and information technology cost on the basis of number of computers in each department. Given the information below, , use the direct method to allocate support department costs.
Details
| Support Department | Operating Departments | Total | |||
| Administration | Information Technology | Assembly | Finishing |
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| Total department costs | $72,000 | $108,000 | $579,000 | $273,000 | $1,032,000 |
| Number of employees | 5 | 6 | 33 | 24 | 68 |
| Number of computers | 6 | 9 | 5 | 5 | 25 |
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| Answer: Fill in the below |
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| Allocation of Costs | |||||
| Administration |
| .. | . | $0 | |
| Information Technology |
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| . | .. | $0 |
| Totals | $0 | $0 |
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| $1,032,000 |
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Managerial Accounting For Clarion University Of Pennsylvania
Authors: Ray H. Garrison
14th Edition
0077577515, 978-0077577513
