solve it with working notes
Sideline, Inc, manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities; however, both manufacturng facilities share the same support services for information technology and human resources. The following shows costs (in thousands) for each manufacturing facility and for each support department. (Click the icon to view the costs) The total costs of the support departments (IT and HR) are allocated to the production departments (clothing and shoes) using a single rate. Data on the bases, by department, as well as what each rate is based on, are provided below (Click the icon to view the base data) Reguired Costs Base data 1. What are the total costs of the production departments (for clothing and shoes) after the support department costs of information technology and human resources have been allocated using (a) the direct method, (b) the step-down method (allocate information technology first), (c) the step-down method (allocate human resources first), and (d) the reciprocal method? 2. Assume that all of the work of the IT department could be outsourced to an independent company for $96.00 per hour. If Sideline no longer operated its own IT department, 35% of the fixed costs of the IT department could be eliminated. Should Sideline outsource its IT services? Sideline, Inc, manufactures athletic shoes and athletic clothing for both amateur and professional athletes. The company has two product lines (clothing and shoes), which are produced in separate manufacturing facilities; however, both manufacturng facilities share the same support services for information technology and human resources. The following shows costs (in thousands) for each manufacturing facility and for each support department. (Click the icon to view the costs) The total costs of the support departments (IT and HR) are allocated to the production departments (clothing and shoes) using a single rate. Data on the bases, by department, as well as what each rate is based on, are provided below (Click the icon to view the base data) Reguired Costs Base data 1. What are the total costs of the production departments (for clothing and shoes) after the support department costs of information technology and human resources have been allocated using (a) the direct method, (b) the step-down method (allocate information technology first), (c) the step-down method (allocate human resources first), and (d) the reciprocal method? 2. Assume that all of the work of the IT department could be outsourced to an independent company for $96.00 per hour. If Sideline no longer operated its own IT department, 35% of the fixed costs of the IT department could be eliminated. Should Sideline outsource its IT services
