Answered step by step
Verified Expert Solution
Question
1 Approved Answer
if i could get the full break down of reciprocal method and the answer for it thatd be great. Problem 7-41 (Algo) Departmental Cost Allocation;
if i could get the full break down of reciprocal method and the answer for it thatd be great. Problem 7-41 (Algo) Departmental Cost Allocation; Service Company [LO 7-3, 7-5] 40% 10 Comprehensive Insurance Company has two product lines health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products, claims processing, administration, and sales. These three operating departments are supported by two departments information technology and operations. The support provided by Information technology and operations to the other departments is shown below. Support Departments Operating Departments Information Claims Technolo Operations Processing Administration Information technology Sales 20% 2014 20% Operations 10% 50 30 The total costs incurred in the five departments are Information technology 5 615,000 Operations 1.710,000 Claims processing 270.000 Administration 585,000 Sales 600.000 Total costs 5.783.000 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first) and (c) the reciprocal method. (Do not round Intermediate calculations. Round final answers to the net dolor
if i could get the full break down of reciprocal method and the answer for it thatd be great.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started