ll etisalat 4G 5:10 PM udmoodle.ud.ac.ae BACC 301 ASSIGNMENET 2 Fall 2017 G.D. K
ID: 2575520 • Letter: L
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ll etisalat 4G 5:10 PM udmoodle.ud.ac.ae BACC 301 ASSIGNMENET 2 Fall 2017 G.D. Kambouris UD Faculty 5 of 8 Question 3.(10 Marks) The Abu Dhabi E-books Company, an online book retailer, has two operating departments-Corporate sales and Consumer sales- and two support departments -Human Resources (HR) and Information Systems. Each sales department conducts merchandising and marketing operations independently. Abu Dhabi E-books uses number of employees as a base to allocate the HR dept costs and processing time as a base to allocate Information Systems dept. costs. The following data is available for September 2017 Support Departments HR 72,700 Operating Departments Info. Systems Corporate Consumer Total 234,400 998,270 9,860 $1,795,230 Budgeted costs incurred before any interdepartmental coat allocation HR support department Support work based on Budgeted Number of Employees Information Systems support department-Support work based on Budgeted Processing time in minutes 21 42 28 91 320 1920 1600 3840 Required: Allocate the HR support department costs and the Information Systems support department costs to the operating departments Corporate and consumer using the Direct Allocation Method. Explain your answer Answer:Explanation / Answer
1.
Allocation of HR costs
(42/70)(28/70)
HR Info. System corporate consumer total Costs incurred $72,700 $234,400 $998,270 $489,860 $1,795,230Allocation of HR costs
(42/70)(28/70)
(72,700) $43,620 $29,080 Allocation of Info. System costs(1920/3520)(1600/3520) (234,400) $127,855 $106,545 0 0 $1,169,745 $625,485 $1,795,230Related Questions
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