Refer to Exercise 16.26. Suppose that government regulations require T3 Technologies to use the reciprocal method to allocate the costs of support departments and activities to line departments.
From Exercise 16.26

Required:
a. Determine the cost per hour billed to the Government.
b. Comment on whether T3 Technologies could boost reported profit by changing the order in which it allocates the costs of support departments to linedepartments.

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IS AS Government Coporate $500,000 $300,000 $2,400,000 $3,240,000 Traced costs Service consumption patternServices consumed by Services provided by AS (Persons 5 IS AS Government Corporate IS (hours) 4,000 hours 2,000 hours 4,000 hours 20 25