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What are the steps to solving the direct method and the step down method? Uni Tours provides guided educational tours to college alumni associations. The

What are the steps to solving the direct method and the step down method?

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Uni 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 Domestic Tours World Tours 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): 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.) Support Departments Operating Departments Information World Data Table - X Domestic Step-down Method Administration Technology Tours Tours Budgeted overhead costs before interdepartment cost allocations Support Departments Operating Departments Allocation of Administration costs Information Domestic World Allocation of Information Technology costs Administration Technology Tours Tours Total Budgeted overhead costs before any Total budgeted overhead of operating departments interdepartment cost allocations S 500,000 S 250,000 S 1,300,000 S 1,840,000 $ 3,890,000 Support work furnished: By Administration Budgeted administration salaries - S 125,000 S 70,000 S 55,000 S 250,000 Percentage 50% 28% 22% 100% By Information Technology Enter any number in the edit fields and then continue to the next question. Budgeted IT service hours 1,000 2,400 1,600 5,000 Percentage 20% 48% 32% 100%

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