Question 4 (20 points)

To produce the Smart meters Production department I & Production department II both consume resources of two support departments: (1) support department Energy-supply and (2) support department Maintenance. The following data are available.

Support Department Energy Supply delivers to:

• Support Department Maintenance 1500 units
• Production Department I 2000 units
• Production Department II 3500 units

Support Department Maintenance delivers to:

• Support Department Energy Supply 1000 units
• Production Department I 1800 units
• Production Department II 2500 units

The total indirect costs of 400.000,-- belongs to:

Support Department Energy Supply	20 %
Support Department Maintenance	35 %
Production Department I	30 %
Production Department II	15 %

Question / Assignment

1. Complete, with the help of the above mentioned data, the table here below. (4 points)

	Energy	Maintenance	Production I	Production II	Total
Indirect cost before allocation (%)	20%	35%	30%	15%	100%
Indirect cost before allocation ()					400.000
Energy (units)
Maintenance (units)
Energy (%)
Maintenance (%)

2. Allocate the cost of the support departments by using the reciprocal method. (10 points)

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3. What are the other 2 methods to allocate cost of support departments? (2 points)

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4. Explain the difference between the methods of question 3. (4 points)

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