Question

Cost information for Lake County Library is as follows.


In addition to directly traceable costs, the library incurred $24,000 for a building lease.

REQUIRED
A. Allocate to departments any costs that have not been traced, and then calculate total costs assigned to each department.
B. Allocate the support department costs to the operating departments using the direct method.
C. Allocate the support department costs to the operating departments using the step-down method. Allocate first the costs for the support department having the largest direct costs.
D. Allocate the support department costs to the operating departments using the reciprocal method. Use either simultaneous equations or ExcelSolver.


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  • CreatedJanuary 26, 2015
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