Help please

' 11 RT DEPAR E TALL ATI (1'7 MARKS) Dunedin Audit Partners (BAP) has two operating departments that provide different types of audits to clients; that is, environmental audits and financial audits. Each of these departments conducts its operations independently. The Environmental Audit department commenced services in 2016 and has 6 staff and 1 partner whereas the more established Financial Audit department has 14 staff and 2 partners. In 2018. staff were paid salaries averaging $80,000 per annum per staff member and partners were each paid $170,000 per annum. The Environmental Audit department carried out 15 audits during the year whereas the Financial Audit department carried out 33 audits over the same period. DAP has two support departments (Human Resources (HR) and Information Technology (IT)) that provide support to the revenue generating departments. DAP uses the number of HR hours to allocate HR costs and the hours of 1T processing time to allocate IT costs. Data for 2018 are available in Exhibit 4. Exhibit 4 Overhead costs for DAP for 2018 Human Resource De - artment Overhead costs before any interdepartmental allocations {55 Support work supplied is HR 'iia of HR hours Support work supplied Required.- {a} Allocate the support departments' costs to the two operating departments using the step-down method, allocating the HR costs first. (5 marks) (b) An alternative method for allocating support departments' costs to the operating departments is the reciprocal services method. Calculate the total overhead for each of the operating departments, if the reciprocal services method was used to allocate the support department costs. Define any variables that you use. (9 marks} {c} Assuming DAP uses the reciprocal services method to allocate support department costs. what is the average cost of an audit job in each operating department in 2018. (3 marks} TURN OVER Question 4 MANUFACTURING OVERHEAD FLEXIBLE BUDGET VARIANCES (13 MARKS) The Parker Corporation is a manufacturer of generic laptops. Fixed and variable manufacturing overheads are allocated to each laptop using budgeted assembly hours. Budgeted assembly time is 2 hours per laptop. Exhibit 5 shows the budgeted amounts and actual results related to overhead for June 2019. Exhibit 5 Manufacturing Overhead at Parker Corporation for June 2019 Actual Results Static (Master) Budget Number of laptops assembled and sold 225 110 Hours of assembly time 360 hours Not disclosed Variable manufacturing overhead cost per Not disclosed $32/hour assembly hour Variable manufacturing overhead costs $11,933 Not disclosed Fixed manufacturing overhead costs $12,180 $10,780 Required: (a) Calculate the variable manufacturing overhead and fixed manufacturing overhead flexible budget variances for June 2019 at Parker Corporation, in as much detail as possible. Indicate whether the variances are favourable or unfavourable. (10 marks) (b) Provide the journal entry (or entries) that close the variances calculated in (a) above to cost of goods sold (COGS). Narration is not required