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CASE PART 2 (50 Points) Assume that Handsome Jack's sells two types of jackets that generate revenue: Formar and Handsome Jack's also has two service
CASE PART 2 (50 Points) Assume that Handsome Jack's sells two types of jackets that generate revenue: Formar and Handsome Jack's also has two service departments: Administration Maintenance. The service departments provide service/benefits in the order of their listing. The following information is available for direct costs. Administration costs are best allocated based on number of employees while Maintenance costs are best allocated based on square footage occupied. The service departments are listed in benefits-provided ranking. Employees Department Admin Maintenance Formal Casual Direct costs $530,000 450,000 900,000 600,000 Footage 30,000 16,500 45,000 10,000 A. Using the direct method, compute the amount allocated to each revenue-generating department. B. Using the step method, compute the amount allocated to each revenue-generating department. Support departments Admin and Maintenance are listed in order of support provided
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