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Folafarbs Book and Masie Sture has two sevice depertenents, Warehouse and Dwat Center. Warchouse Dopartment eosts of 5350,000 art allocited on the busis of budgeted
Folafarbs Book and Masie Sture has two sevice depertenents, Warehouse and Dwat Center. Warchouse Dopartment eosts of 5350,000 art allocited on the busis of budgeted warthousehour. Deta Cetter Depurtment costs of 5150,000 are allocated based on the mumber of compuler log-on houn. The overhead costs of operatine depurtments Music and Books are 5125.000 ard 5150.000 , sopectively. 2.000 and 2.500 dirnct laber horers (the allocation base) are boalucted for department Muich arts Beoks, respectrvely. Data on budipeted warehoase-houn ind aimber of computer loc-oe houn are as follows: Required. 1) Allockie the two support departrents' coots to the fwo operating departments using the followint mathots A. Diroct method b. Step-down mathod (allocale Warchouse firt) c. Stop-down mathod (aliocate Data Conter fint) 2) Determine the departmental Dooks ovenhead rwe inchading the cost allocated from Warshouse Department and Data Center Departinent. 3) Discuss the inplisations of the diflerest inethods uned to allocate the support dopartment costs to the operating dopartments. Specifically, ceplain how the use of different methods affoct docision-makine
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