Question: Fowler Corporations computer services department assists two operating departments in using the companys information system effectively. The annual cost of computer services is $360,000. The
Fowler Corporation’s computer services department assists two operating departments in using the company’s information system effectively. The annual cost of computer services is $360,000. The production department employs 22 employees, and the sales department employs 18 employees. Fowler uses the number of employees as the cost driver for allocating the cost of computer services to operating departments.
Required
Allocate the cost of computer services to operating departments.
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Step 1 is to determine the allocation rate Service department cost 360000 Alloca... View full answer
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