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After starting his first full-time position for a private company, Gary was anxious to go above and beyond the expectations of his supervisor. So, when
After starting his first full-time position for a private company, Gary was anxious to go above and beyond the expectations of his supervisor. So, when Mary asked him to complete the support department cost allocations for all departments using the same method as they used last year, he thought, "Here's my chance!" In addition to the step method that this company was currently using, Gary remembered learning two other methods for allocating these costs-the direct method and the reciprocal method. The two operating segments of this company reflect their locations-Suburban and Downtown. The two support departments are Administrative Services and Maintenance Services. Their costs have been allocated by administrative hours and maintenance hours, respectively. Here are the relevant costs and usages for all four of these departments. Allocate the support department costs one more time, this time using the reciprocal method in Excel (you may check the reasonableness of each total support department cost estimate by solving by hand). (Round intermediate calculations to 4 decimal places, e.g. 0.1526 and final answers to 2 decimal places, e.g. 15.25.)
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