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Exercise 4-16A (Algo) Allocating costs of service centers to operating departments-direct methoc LO 4-6 Solomon Trust Corporation has two service departments: actuary and economic analysis.
Exercise 4-16A (Algo) Allocating costs of service centers to operating departments-direct methoc LO 4-6 Solomon Trust Corporation has two service departments: actuary and economic analysis. Solomon also has three operating departments: annuity, fund management, and employee benefit services. The annual costs of operating the service departments are $532,400 for actuary and $798,600 for economic analysis. Solomon uses the direct method to allocate service center costs to operating departments. Other relevant data follow. *The operating costs are measured before allocating service center costs. Required a. Use operating costs as the cost driver for allocating service center costs to operating departments. b. Use revenue as the cost driver for allocating service center costs to operating departments. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Use operating costs as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places. Complete this question by entering your answers in the tabs below. Use revenue as the cost driver for allocating service center costs to operating departments. Note: Round "Allocation Rate" to 2 decimal places
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