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You are advised to spend no longer than 20 minutes departments-administrative Sesama TV provides management consulting services to government and corporate clients. Sesama TV has
You are advised to spend no longer than 20 minutes departments-administrative Sesama TV provides management consulting services to government and corporate clients. Sesama TV has two support services (AS) and information systems (IS)-and two operating departments-government consulting (GOVT) and corporate consulting (CORP). For the first quarter of 2020, Sesama TV's cost records indicate the following: 1 Budgeted indirect costs before any interdepartmental cost allocations: Support departments Operating departments AS IS GOVT CORP RM600,000 RM2,400,000 RM8,756,000 RM12,452,000 2 Sesama TV uses number of employees to allocate administrative services costs and computer time to allocate information systems costs. a. AS department provides 25 employees to IS department, 40 employees to GOVT department, and 35 employees to CORP department. b. IS department provides 3,000 hours of computer time to AS department, 1,000 hours of computer time to GOVT, and 6,000 hours of computer time to CORP Required: Based on the percentage of support services provided to other support departments, Allocate the two support departments' costs to the two operating departments using the step-down method. (11 marks)
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