Question

Wright Consulting, LLP, has three operating departments: tax, estate planning, and small business. The company’s internal accounting and maintenance departments support the operating departments. Moreover, the maintenance department also supports the internal accounting department. Other relevant information follows:


Wright allocates its maintenance cost based on the square footage of each department’s office space. The firm allocates the internal accounting cost based on each department’s operating revenue.

Required
a. Allocate the maintenance cost to the operating and internal accounting departments.
b. After allocating the maintenance cost, allocate the internal accounting cost to the three operating departments.
c. Compute the total allocated cost of the service departments for each operatingdepartment.


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  • CreatedFebruary 07, 2014
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