managerial account

suppose NY Times has two operating departments and two support departments

allocate overhead costs -using direct method-using reciprocal method

Name_________________________ ACGB 7155 Fall 2016 M. Shekhtman HW 6 (Ch 15) 1. Suppose NY Times has two operating departments (Retail & Wholesale) and two support departments (Human Resources and Printing) OH Costs Support Support Operating Operating HR Printing Retail Wholesale $60,000 $120,000 $50,000 $30,000 3,000 6,000 6,000 3,000 2,400 Work done by HR Labor hours % Work done by Printing Machine hours 600 % a) Allocate overhead costs using Direct method OH Costs Support Support Operating Operating HR Printing Retail Wholesale $60,000 $120,000 $50,000 $30,000 $0 $0 Allocation of HR Allocation of Print Total Overhead b) Allocate overhead costs using Reciprocal method OH Costs Support Support Operating Operating HR Printing Retail Wholesale $60,000 $120,000 $50,000 $30,000 $0 $0 Allocation of HR Allocation of Print Total Overhead 2. Distinguish between the stand-alone and the incremental revenue allocation methods