Support Departments Revenue departments Info System Facilities Computer Programs
ID: 2572228 • Letter: S
Question
Support Departments Revenue departments Info System Facilities Computer Programs Consulting Training Direct Costs $ 50,000 $ 25,000 $ 75,000 $ 110,000 $ 85,000 Facilities (Sq Ft) 200,000 400,000 60,000 800,000 Info Systems (hrs) 400 1,100 600 900 Total Cost Step Method $ - $ - $ - Total Cost Reciprocal Support Departments Revenue departments Info System Facilities Computer Programs Consulting Training Direct Costs $ 50,000 $ 25,000 $ 75,000 $ 110,000 $ 85,000 Facilities (Sq Ft) 200,000 400,000 60,000 800,000 Info Systems (hrs) 400 1,100 600 900 Total Cost Step Method $ - $ - $ - Total Cost ReciprocalExplanation / Answer
Under step down method, unless other wise mentioned, first the costs of the those support departments whose cost is more is assigned first and then the other later.
Hence, first Infosystems costs are assigned which is as follows:
Total hours =3000 hours .
Cost per hour =$50,000/3000
=16.67 per hour.
After assigning the costs of infosystems to other departments, the costs are as follows:
Cost of facilities department=$31,668./1260000
Total square feet of facilities department=0.025133
Particulars Info systems Facilities Computer Programs Consulting Traning Direct costs 50000 25000 75000 110000 85000 Allocation of facilities cost to other departments 400 1100 600 900 Cost per of infosystmes per hour 16.67 16.67 16.67 16.67 Total costs of info systems assigned 6668 18337 10002 15003 Total costs before assigning facilities dept costs 31668 93337 120002 100003Related Questions
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