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please help me solve this. q3 operati departments using step down method of cost allocation. Question 3 Marks 20 The Bronco Wick Company provides the
please help me solve this. q3
operati departments using step down method of cost allocation. Question 3 Marks 20 The Bronco Wick Company provides the following selected data about its three service and two operating departments: E-books, an online book retailer, has two operating departments-Corporate Sales and Consumer Sales-and two support departments. Human Resources and Information Systems. Each sales department conducts merchandising and marketing operations independently. E books uses numer of employees to allocate Human Resources costs and processing time to allocate Information Systems costs. The following data are available for the year: De Yew set Loos Window the B D SUPPORT OPERATING 1 DEPARTMENTS DEPARTMENTS Human Information Corporate Consumer 2 Resources Systems Sales Sales 3 Budgeted costs incurred before any 4 Interdepartment cost alocations $72,700 $234,400 $998, 270 $489,860 Support work supplied by Human 5 Resources Department 6 Budgeted number of employees 21 42 28 Support work supplied by Information 7 Systems Department 8 Budgeted processing time (in minutes) 320 1.920 1,600 Required: Allocate the cost of support departments to operating departments using i) direct method of cost allocation ii) and step down method of cost allocation Step by Step Solution
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