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QUESTION 9 6 points Save Answer Kovacik manufactures two types of piggy banks in two different departments: a kangaroo-shaped piggy bank and a platypus-shaped
QUESTION 9 6 points Save Answer Kovacik manufactures two types of piggy banks in two different departments: a kangaroo-shaped piggy bank and a platypus-shaped piggy bank. The plant is highly automated and contains only two other departments: (1) engineering and design, and (2) information systems. Kovacik allocates support department costs according to estimated service use. Estimated information for next year is as follows: Direct costs Services used Engineering and design Information systems Production volume Support Operating Engineering Information Kangaroo Platypus and design systems bank bank $2700 $8000 $10000 $20000 10% 40% 50% 20% 30% 50% 8000 4000 Total allocated costs are assigned to individual units using the production volume. NOTE: Enter only the numerical answer without '$' signs or commas - eg, $20,000 should be entered as 20000. Required (a) Determine the estimated total allocated costs for the operating departments using the stepdown method. Support Departments Operating Departments Engineering and Design Information Systems Kangaroo Bank Platypus Bank Allocation Bases: Information systems 20% Engineering and 30% 44.4444% 50% 55.5556% design Direct Costs $2 700 $8.000 $10 000 $20 000 Allocations: Step 1: Information 1 600 (8 000) systems Step 2: Engineering and design (4 300) 0
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