Question

Barry’s Fashions operates a Downtown Store and a Mall Store. Both department stores use three centralized, corporate service departments (human resources, maintenance, and information management). The following table summarizes the allocation bases used to allocate each service department, the operating expenses incurred by each service department, and the amount of each allocation base used by the three service departments and the two stores.



Required:
(Round all fractions to three significant digits.)
a. Using the direct allocation method for allocating service department costs, calculate the amount of information management expense allocated to the Mall Store.
b. Using the direct allocation method for allocating service department costs, calculate the allocated cost per line printed for information management services.
c. Using the step- down allocation method for allocating service department costs, calculate the amount of information management expense allocated to the Mall Store.
d. Using the step- down allocation method for allocating service department costs, calculate the allocated cost per line printed for information management services.
e. Compare and contrast your answers in parts (b) and ( d ). First, describe why you get different answers. Second, which number would you recommend managementuse?


$1.99
Sales0
Views48
Comments0
  • CreatedDecember 15, 2014
  • Files Included
Post your question
5000