Jordan Information Services, Inc., has two service departments: human resources and billing. Jordan'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 billing department. Other relevant information follows. Human Legal Resources Billing Health Care Retail Services Number of employees 20 50 198 148 104 Annual cost $900,000 $2,310,000 $6,080,000 $4,880,000 $2,880,000 Annual revenue $9,800,000 $5,800,000 $4,400,000 *This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Jordan 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 Jordan 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. Req A1 Reg A2 Req B1 Reg B2 Req C1 Reg C2 Allocate service department costs to operating departments, assuming that Jordan adopts the step method. The company uses the number of employees as the base for allocating human resources department costs. Allocation Weight of Department Allocated Cost Rate Base Billing = $ Health Care 0 Retail Legal Services Total $ 0 0 XX 0 0 FA Reg A2 > quLIUD ilerlly yuur diswers in the tabs below. Reg A1 Req A2 Req B1 Reg B2 Reg C1 Reg C2 Allocate service department costs to operating departments, assuming that Jordan adopts the step method. The company uses the department annual revenue as the base for allocating the billing department costs. (Round "Allocation rate" to 2 decimal places.) Department Allocation Rate Weight of Base Allocated Cost Health Care 1 $ 0 0 Retail Legal Services Total x x 0 0 $ Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Reg B2 Reqci Reg C2 Allocate service department costs to operating departments, assuming that Jordan adopts the direct method. The company uses the number of employees as the base for allocating human resources department costs. Allocation Weight of Allocated Department Rato Baso Cost Billing Health Care $ 0 Retail Legal Services Total $ XX OOO 0 0 complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 Reqc1 Reg C2 Allocate service department costs to operating departments, assuming that Jordan 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 Weight of Rate Allocation Base Allocated Cost $ Health Care 0 XXX 0 0 Retail Legal Services Total $ 0 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 ReqC1 Req C2 Compute the total allocated cost of service centers for each operating department using direct method. Department Human Resources Billing Total Allocated Cost $ 0 0 Health Care Retail Legal Services Total 11 0 0 $
