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Dynamic Petroleum Logistical Solutions is an integrated company providing oil exploration, crude oil refining and petroleum products distribution throughout the United States and Canada. You
Dynamic Petroleum Logistical Solutions is an integrated company providing oil exploration, crude oil refining and petroleum products distribution throughout the United States and Canada. You have been provided with Direct Costs for the following 4 service organizations and 3 operating organizations: Service Organizations: 1. Home Office 2. Information Systems 3. Human Resources 4. Accounting Operating Organizations 1. Exploration 2. Refining 3. Distribution Using both the Direct and Step Down methods, calculate the total allocated service costs and direct costs for the operating organizations: Exploration Division, Refining Division, and Distribution Division. Direct Method --Percentage of Services Used By Direct Costs medic a tion Systems Accounting Exploration $550.000 $150.000 Information Systems SA 10% 10% Accounting Refining 5640000 $337,500 $6.000 SLO Total Costs B I 30% Allocated Services Costs + Direct Costs information Systems Total Allians Step Method -- Percentage of Services Used By $50,000 $350,000 $400,000 $781,200 $337800 Tots SETS $1. 600
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