Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 10 (4 Marks - Suggested time approx. 15 minutes) Bigfirm has two support departments: the Human Resources Department and the Computing Department.Bigfirm also has
QUESTION 10 (4 Marks - Suggested time approx. 15 minutes) Bigfirm has two support departments: the Human Resources Department and the Computing Department.Bigfirm also has two departments that service clients directly: the Taxation division and the Audit division. The usage of the two support departments' output (in hours) for the year just ended was as follows: The Budgeted costs in the two support departments for the year just ended were: Calculations to three decimal places Required: a) Use the direct method of cost allocation to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. (1 marks - suggested time approx. 4 minutes) b) Use the step down method to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. Bigfirm allocates the costs of the Computing Department first. . (1 marks - suggested time approx. 4 minutes) c) Use the reciprocal services method to allocate the budgeted costs of the Human Resources and Computing Departments to the Taxation and Audit Divisions. (2 marks - suggested time approx. 7 minutes)
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