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AT&T allocates service department costs: IT $800,000, HR $500,000 to operating departments Sales and Production. Requirements: Determine allocation rates using the direct method. Allocate costs

  1. AT&T allocates service department costs: IT $800,000, HR $500,000 to operating departments Sales and Production.
    • Requirements:
      • Determine allocation rates using the direct method.
      • Allocate costs to each operating department.
      • Prepare a cost allocation report.
      • Compare results with the step-down method.

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