Consider the data. Required: a. Compute the total costs in the cost pool for the P&R and
Question:
Required:
a. Compute the total costs in the cost pool for the P&R and FM departments, using the reciprocal method to allocate the costs of the two support departments to the line departments.
b. Comment on which of the answers from Exercises 16.21, 16.22, and 16.23 provides the most accurate estimate of the cost of the support services consumed by the P&R and FMdepartments.
Transcribed Image Text:
GeneralParks and RecreationFaclities Human Resources $100,000 Mantenance S450,000 Traced costs $60,000 S360,000 Service consumption pattern Services consumed b nan ResouGenra Parks and ReationFalities Administration Maintenance Services Human RESOLTCCS General Admiistration provided by 40% 30% 30% 20% 60% 20%
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a The reciprocal method considers all interactions among support departments cost pools As explained ...View the full answer
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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