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H&R Clock provides bookkeeping services to clients in New York and California. H&R Clock has two support departmentsAccounting (ACC) and information technology (IT)and two operating
H&R Clock provides bookkeeping services to clients in New York and California. H&R Clock has two support departmentsAccounting (ACC) and information technology (IT)and two operating divisionsPublic Companies and Private Companies. For the first quarter of 2020, the accounting records of the H&R Clock were as follows: ACC IT PUBLIC PRIVATE Budgeted Cost $2,400,000 $600,000 $19,000,000 $25,000,000 ACC 25% 45% 30% IT 20% 30% 50% Required: Allocate the two support departments' costs to the two operating departments using the following methods: a. Direct method b. Step-down method (allocate ACC first) c. The reciprocal method
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