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Required a. Allocate service department costs to operating departments, assuming that Fanning adopts the step method. The company uses the number of employees as
Required a. Allocate service department costs to operating departments, assuming that Fanning adopts the step method. The company uses the number of employees as the base for allocating human resources department costs and department annual revenue as the base for allocating the billing department costs. b. Allocate service department costs to operating departments, assuming that Fanning adopts the direct method. The company uses the number of employees as the base for allocating the human resources department costs and department annual revenue as the base for allocating the billing department costs. c. Compute the total allocated cost of service centers for each operating department using each allocation method. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B1 Req B2 Req C1 Req C2 Allocate service department costs to operating departments, assuming that Fanning adopts the step method. The company uses the number of employees as the base for allocating human resources department costs. Department Billing Health Care Retail Legal Services Total Allocation Rate Weight of Base Allocated Cost
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