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Using the reciprocal method what is the combined total support department cost that is allocated to the Gaming and Work Operating Departments closest to? $250,000
Using the reciprocal method what is the combined total support department cost that is allocated to the Gaming and Work Operating Departments closest to? $250,000 $500,000 $750,000 $1,000,000 $1,250,000 Which of the following statements about Computersforlife's allocation of support department costs is likely to be true? 1. Work will not be allocated any of the $250,000 costs of SD\#2 under the reciprocal method 2. Work will not be allocated any of the $250,000 costs of SD\#2 if the direct method was used. 3. The accuracy of the support department cost allocation to the operating departments will depend solely on the choice between the different support department cost allocation methods (i.e., reciprocal vs step-down vs direct). Statement 1 only Statement 2 only Statement 3 only Statements 1 and 2 only Statements 2 and 3 only This information relates to the next two questions. The CEO of Computersforlife is a good friend of Ayaa, Computerforlife manufactures laptops. The organisation has two support departments, SD\#1 and SD\#2; and two operating departments: Gaming and Work. SD\#1's cost is allocated using the number of employees as the allocation base. SD\#2's cost is allocated using the number of windows as the allocation base. The following information has been provided by the company
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