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The Bridgeport Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research
The Bridgeport Brokerage firm is organized into two major sales divisions: institutional clients and retail clients. The firm also has two support departments: research and administration. The research department's costs are allocated to the other departments based on a log of hours spent on tasks for each user. The administration department's costs are allocated based on the number of employees in each department. Records are available for last period as follows: Support Departments Operating Departments Research Administration Institutional Retail Payroll costs $ 332,800 $ Other costs $ 227,650 $ 142,400 $ 128,520 306,900 $ 360,100 $ 535,800 $ 217,360 Research hours 100 200 500 300 Number of employees 7 10 9 9 Using the reciprocal method, determine the total cost of operations for each sales division. Use either simultaneous equations or Excel Solver. (Round all entries to whole amounts, e.g. 5,275.) Support Departments Research Allocation bases: Research hours Number of employees +A Total department costs: Cost allocations: Research Administration Administration Total allocated cost % do +A|| % de do % +All % do Institutional Retail Total Operating Departments % do % do % do % do do % +A +A|| +A +All do % = +All =
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