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Road Trip Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours.
Road Trip Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours. Each of the tour divisions uses the services of the company's two support departments: Administration and Information Technology. Additionally, the Administration and Information Technology departments use the services of each other. Data concerning the past year are as follows: (Click the icon to view the past year data.) Requirements - Data table What are the total overhead costs of the operating departments (domestic and world tours) after the support department costs of Administration and Information Technology have been allocated using (a) the direct method, (b) the step-down method (allocate Administration first), (c) the step-down method (allocate Information Technology first), and (d) the reciprocal method using the method of repeated iterations and linear equations? Budgeted overhead costs before any interdepartment cost allocations Print Done Total budgeted overhead of operating departments Support work furnished: By Administration Budgeted administration salaries Percentage By Information Technology Support Departments Operating Departments Administration Information Technology Domestic Tours World Tours Total $ 440,000 $ 350,000 $ 1,600,000 $ 1,800,000 $ 4,190,000 Budgeted IT service hours Percentage 1,000 20% 80,000 $ 40% 48,000 $ 24% 72,000 $ 36% 200,000 100% 1,600 2,400 5,000 32% 48% 100%
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