Question
Traxx Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours. Each of
Traxx Tours provides guided educational tours to college alumni associations. The company is divided into two operating divisions: domestic tours and world tours. Each of the tour divisions uses the services of the company's two support departments: Administration and Information Technology. Additionally, the Administration and Information Technology departments use the services of each other. Data concerning the past year are as follows: (Click the icon to view the past year data.) (a) Direct method: What are the total overhead costs of the operating departments (domestic and world tours) after the support department costs of Administration and Information Technology have been allocated using the direct method? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar.) Direct Method Budgeted overhead costs before interdepartment cost allocations Allocation of Administration costs Allocation of Information Technology costs Total budgeted overhead of operating departments (b) Step-down method (allocate Administration first): Domestic Tours World Tours What are the total overhead costs of the operating departments (domestic and world tours) after the support department costs of Administration and Information Technology have been allocated using (b) the step-down method (allocate Administration first)? (Do not round intermediary calculations. Only round the amount you input in the input field to the nearest dollar. Complete all input fields. If a total is zero, enter "0". Use a minus sign or parentheses when decreasing departments by allocating costs.) Step-down Method Budgeted overhead costs before interdepartment cost allocations Allocation of Administration costs Allocation of Information Technology costs Total budgeted overhead of operating departments Support Departments Operating Departments Information Domestic World Administration Technology Tours Tours
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