Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Support departments Operating departments support dept #1 support dept #2 operating #1 operating #2 total departmental costs $ 90,000.00 $ 60,000.00 $ 700,000.00 $ 300,000.00

Support departments Operating departments
support dept #1 support dept #2 operating #1 operating #2 total
departmental costs $ 90,000.00 $ 60,000.00 $ 700,000.00 $ 300,000.00 $ 1,150,000.00
support work furnished:
by support dept#1-- salaries 40,000 110,000 50,000 200,000
by support dept#2-- # of people 3 4 2 9

The accountant for Fio, Inc. is preparing the budgets for operating department support service costs. Support Department #1 cost are allocated based on salaries, and support department #2 are allocated based on number of employees. The data above has been collected.

If the step-down method is used and support Department #1 is allocated first, what is the total amount of Support Department #2 cost to be allocated to other departments? _____________________________.

You must show your computation (NOT ON SCRAP PAPER) in order to receive credit.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen Wilken Braun, Wendy M. Tietz

2nd Custom Edition

1269396803, 978-1269396806

More Books

Students also viewed these Accounting questions

Question

How competitive is the external environment of your organization?

Answered: 1 week ago

Question

What other organizations compete on this issue?

Answered: 1 week ago

Question

What significant opposition exists?

Answered: 1 week ago