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Struggling a bit with the problem and am not sure if the answers I got are correct or not, would love to see a step-by-step
Struggling a bit with the problem and am not sure if the answers I got are correct or not, would love to see a step-by-step process and see if I got everything correct, thanks!
Required Use four decimal places (e.g., 33.3333%) in your calculations.
- Using computer usage time as the allocation base for the information systems department and square feet of floor space as the application base for the facilities department, apply overhead from these service departments to the production departments, using three methods:
a. Direct method
b. Step method (both for the information systems department going first and for the facilities department going first).
c. Reciprocal method.
2. Rather than allocate costs based on computer and floor space usage, how might Data Performance better assign the information systems department's costs?
(CMA Adapted)
Already added all of the information, another similar question got answered so I don't understand why this requires more info
Required Use four decimal places (e.g., 33.3333\%) in your calculations. What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? 7-39 Departmental Cost Allocation Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilitiesStep by Step Solution
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