Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PROBLEM The Screamin' Eagles Company makes wheels and wings for ground transport vehicles and drones. In addition to the key manufacturing departments, Screamin' Eagles needs
PROBLEM The Screamin' Eagles Company makes wheels and wings for ground transport vehicles and drones. In addition to the key manufacturing departments, Screamin' Eagles needs two key support services, provided by its Maintenance and IT departments The Maintenance costs are allocated to other departments based on the square footage of space each department occupies. The IT department allocates its costs to other departments based on the amount of time the IT employees spend assisting the other departments. The cost information of all four departments, alongwith their usage information for both allocation bases, is as follows: Support Departments Operating Departments Maintenance IT Wheels Wings Totals Initial cost 5 125,000 5 80,000 5 415,000 5 550,000 5 1,270,000 Square feet occupied 1,200 2,000 2,400 5,600 11,200 IT labor hours used - 1,000 2,850 2,150 6,000 Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas orfunctions with cell references to the Problem area or work area as indicated. Allocate the support department costs using the direct method to determine the total costs forwhich each operating department should be accountable. Support Departments Operating Departments Maintenance IT Wheels Wings Totals . . V V V V w Initial cost 5 125,000 5 80,000 5 415,000 5 650,000 5 1,270,000 Allocations: _ V V V V V Maintenance (125,000) - 37,500 87,500 - ' ' ' ' ' IT - (80,000) 45,600 34,400 - Total 5 - $ - ' 5 498,100' $ 771,900' $1,270,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started