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Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating the human resources department costs. Department Allocation Weight of Allocated Rate X Base = Cost Billing X $ O Health Care 8 O Retail X O Legal Services X = O Total 0Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the department annual revenue as the base for allocating the billing department costs. (Round "Allocation rate" to 3 decimal places.) Department Allocation X Weight of Allocated Rate Base Cost Health Care $ 0.075 X $ 9,000,000 $ 675,000 Retail 0.075 X 6,200,000 = 465,000 Legal Services 0.075 X 4,800,000 360,000 Total $ 1,500,000Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Compton adopts the direct method. The company uses the number of employees as the base for allocating the human resources department costs. Department Allocation Rate X Weight Allocated of Base Cost Billing $ 4,000 X X O Health Care $ 4,000 X = O Retail 4,000 X = O Legal Services 4,000 X = O Total $ 0Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Compton adopts the direct method. The company uses the department annual revenue as the base for allocating the billing department costs. (Round "Allocation rate" to 4 decimal places.) Department Allocation Weight of Allocated Rate X Base Cost Health Care X = Retail X Legal Services X S Total $ 0Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Compute the total allocated cost of service centers for each operating department using step method. Human Total Department Resources Billing Allocated Cost Health Care + = $ 0 Retail + = 0 Legal Services 0 Total $ 0Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Compute the total allocated cost of service centers for each operating department using direct method. Department Human Total Resources + Billing E Allocated Cost Health Care + $ O Retail + 0 Legal Services + O Total $ 0Managerial Accounting 5830 X Connect X Untitled document - Google Doc X How to take a screenshot on Win X + X - > C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.ht.. Ch. 4 Post-Chapter Assignment i Saved Help Save & Exit Submit Check my work 7 Compton Information Services, Inc., has two service departments: human resources and billing. Compton's operating departments, organized according to the special industry each department serves, are health care, retail, and legal services. The billing department supports only the three operating departments, but the human resources department supports all operating departments and the 15 billing department. Other relevant information follows. points Human Health Legal Resources Billing Care Retail Services eBook Number of employees 16 20 80 60 40 Annual cost* $720,000 $1, 428, 000 $6, 000, 000 $4, 800,000 $2, 800, 000 Print Annual revenue $9, 000, 000 $6, 200, 000 $4, 800, 000 References *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Compton adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating the billing department costs. b. Allocate service department costs to operating departments, assuming that Compton adopts the direct method. The company uses the number of employees as the base for allocating the human resources department costs and department annual revenue as the base for allocating the billing department costs. c. Compute the total allocated cost of service centers for each operating department using each allocation method. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Compton adopts the direct method. The company Mc Graw Hill Type here to search O e 8:13 PM 99+ 9/26/2020 21
