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Munoz Information Services, Inc., has two service departments: human resources and billing. Munoz's operating departments, organized according to the special industry each department serves are

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Munoz Information Services, Inc., has two service departments: human resources and billing. Munoz'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 50 149 102 Annual cost. $900,000 $2,510,000 $6,090,000 64,890.000 $2,890,000 Annual revenue $9.900,000 $5,750,000 $4,350,000 This is the operating cost before allocating service department costs. Required a. Allocate service department costs to operating departments, assuming that Munoz 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 Munoz 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. Reg A1 Reg A2 Req B1 Req B2 Reg C1 Reg C2 Allocate service department costs to operating departments, assuming that Munoz adopts the step method. The company uses the number of employees as the base for allocating human resources department costs. Department Allocation Weight of Allocated Cost Rate Base Billing 0 Health Care 0 Retail 0 0 Legal Services $ 0 Total . RA Req A2 > Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Reg B1 Req B2 Reg C1 Reg C2 Allocate service department costs to operating departments, assuming that Munoz 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.) Allocation Rate Weight of Base Allocated Cost $ 0 0 Department Health Care Retail Legal Services Total 0 $ Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B1 Reg B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Munoz adopts the direct method. The company uses the number of employees as the base for allocating human resources department costs. Department Allocation Weight of = Allocated Cost Rate Base Billing Health Care $ Retail Legal Services $ 0 Total OOO Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B1 Req B2 Reg CI Reg C2 Allocate service department costs to operating departments, assuming that Munoz adopts the direct method. The company uses the department annual revenue as the base for allocating the biling department costs. (Round "Allocation rate to 4 decimal places.) Allocation Rate Weight of Base Allocated Cont 0 Department Health Care Retail Legal Services Total M 0 0 $ 0 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Req B1 Req B2 ReqC1 Reg C2 Compute the total allocated cost of service centers for each operating department using step method. Department Human Total Allocated Resources Billing Cost Health Care 358,200+ $ 1,287,000 1,645,200 Retail 268,2001 747,500 1,015,700 Legal Services 183,600 565,500 - 749,100 Total $ 3,410,000 Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B1 Req B2 Reg C1 Reg C2 Compute the total allocated cost of service centers for each operating department using direct method. Department Health Care Retail Legal Services Total Human Resources $ 398,000 + 298,000+ 204,000 Billing $ 1,242,450 721,625 - 545,925 - Total Allocated Cont $ 1,640,450 1,019,625 749,925 $ 3,410,000

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