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Required Information The following information applies to the questions displayed below) Data Performance, a computer software consulting company has three major functional areas: computer programming. Information systems consulting, and software training Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities: Service Departnents Information Systems Facilities $ 20,00 $100,00 600 240 Budgeted overhead (base) Information Systems Computer hours) Facilities (square feet) Computer Beogrine $ 416, 2,260 vod Production Departs Information yste Soon Consulting Trainine Tota 549, $ 125,0 51, 547, J 90 3,000 64 ce 2,400 Required: 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 and determine the total cost of each production department using these three methods Ditect method Step method (both for the information systems department going first and for the facilities sortiment going first c Reciprocal method For all requirements, do not round Intermediate calculations. Round final answers to the nearest dollar. Totals may be off by $1 due to rounding.) Programming Consulting Training Total D Dirent Method reg Method formation Systems Goes First Slegtethod Faites les First Focal method 7- Homework (note earlier due date) Saved Required Information [The following information applies to the questions displayed below) Data Performance, a computer software consulting company, has three major functional areas: computer programming. information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs. Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities: Service Departments Information Systems $ 200,00 Facilities $ 184,000 600 Budgeted overhead (base) Information Systems (computer hours) Facilities (square feet) Production Departments Information Systems Software Consulting Training Total $494,000 $ 325,00 $ 1,547, Bee 300 ge 3, Bee 588 2,400 Computer Programming $ 416,000 1,200 960 240 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 and determine the total cost of each production department 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 {For all requirements, do not round Intermediate calculations. Round final answers to the nearest dollar. Totals may be off by $1 due to rounding
