Question
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 reciprocal method is used to allocate support costs, what are the two linear equations needed to solve for reciprocated costs? ______________________________.
You must show your computation (NOT ON SCRAP PAPER) in order to receive credit.
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
