Question
Slughorn, Inc. has two operating departments, Potions (which employs 50 people) and Defense (which employs 45 people), and two support departments, Human Resources (which employs
Slughorn, Inc. has two operating departments, Potions (which employs 50 people) and Defense (which employs 45 people), and two support departments, Human Resources (which employs 22 people) and Accounting (which employs 25 people). Human Resources Department costs of $2,694,675 are allocated on the basis of number of employees. Accounting Department costs of $1,134,600 are allocated based on accounting hours. The Accounting department uses 9,000 hours for Human Resources, 20,000 hours for Potions, 11,000 hours for Defense, and 10,000 hours for itself.
How much total service department cost should be allocated to Potions if Slughorn uses the reciprocal method to allocate service costs?
2)
How much total service department cost should be allocated to Defense if Slughorn uses the reciprocal method to allocate service costs?
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