Direct and step-down allocation. E-books, an online book retailer, has two operating departments- corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operations independently. E-books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2017: Page Layout Data Home Insert Formulas Review View в SUPPORT ID OPERATING DEPARTMENTS DEPARTMENTS Corporate Consumer Sales Sales Human Information Resources Systems 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human 5 resources department Budgeted number of employees Support work supplied by information 7 systems department Budgeted processing time (in minutes) $72,700 $234,400 $998,270 $489,860 4 21 42 28 8. 320 1,920 1,600
Direct and step-down allocation. E-books, an online book retailer, has two operating departments- corporate sales and consumer sales-and two support departments-human resources and information systems. Each sales department conducts merchandising and marketing operations independently. E-books uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2017: Page Layout Data Home Insert Formulas Review View в SUPPORT ID OPERATING DEPARTMENTS DEPARTMENTS Corporate Consumer Sales Sales Human Information Resources Systems 3 Budgeted costs incurred before any interdepartment cost allocations Support work supplied by human 5 resources department Budgeted number of employees Support work supplied by information 7 systems department Budgeted processing time (in minutes) $72,700 $234,400 $998,270 $489,860 4 21 42 28 8. 320 1,920 1,600
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...
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Allocate the support departments’ costs to the operating departments using the direct method
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