Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can someone help with this please? As soon as possible the last time i posted it was wrong. Barfield Corporation prepares business plans and marketing

Can someone help with this please? As soon as possible the last time i posted it was wrong.

Barfield Corporation prepares business plans and marketing analyses for start-up companies in the Cleveland area. Barfield has been very successful in recent years in providing effective service to a growing number of clients. The company provides its service from a single office building in Cleveland and is organized into two main client-service groups: one for market research and the other for financial analysis. The two groups have budgeted annual costs of $520,000 and $860,000, respectively. In addition, Barfield has a support staff that is organized into two main functions: one for clerical, facilities, and logistical support (called the CFL group) and another for computer-related support. The CFL group has budgeted annual costs of $243,000, while the annual costs of the computer group are $708,000.

Tom Brady, CFO of Barfield, plans to prepare a departmental cost allocation for his four groups, and he assembles the following information:

Percentage of estimated dollars of work and time by CFL group:

10%service to the computer group

20%service to market research

70%service to financial analysis

Percentage of estimated dollars of work and time by the computer group:

20%service to the CFL group

40%service to market research

40%service to financial analysis

Required: Determine the total cost in the financial analysis and market research groups, after departmental allocation, using (a) the direct method, (b) the step method when the sourcing department that provides the greatest percentage of services to other service departments goes first, and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.)

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_2

Step: 3

blur-text-image_3

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

ICSA Study Text In Management Accounting

Authors: Richard Lyall

4th Edition

186072308X, 978-1860723087

More Books

Students also viewed these Accounting questions

Question

Distinguish between HRD and human resource management (HRM)

Answered: 1 week ago

Question

Define what the four-fifths rule is.

Answered: 1 week ago