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Information Systems $80,000 Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) Facilities $33,000 1,000 Computer Systems Programming Consulting $153,000 $198,000 500 1,000 340
Information Systems $80,000 Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) Facilities $33,000 1,000 Computer Systems Programming Consulting $153,000 $198,000 500 1,000 340 510 Software Training $135,000 2,500 680 170 Required: 1. Using computer usage time as the allocation base for the information systems department and square feet of floor space as the application base for the facilities department, apply overhead from these service departments to the production departments, using these three methods: a. Direct method. b. Step method (both for the information systems department going first and for the facilities department going first). c. Reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). For all requirements, Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.) Programming Consulting Training Total a. Direct Method b. Step Method (Information Systems Goes First) Step Method (Facilities Goes First) Reciprocal method C
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