A book shop retailer named 'Science' has two operating departments sales and consumer sales, and two...
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A book shop retailer named 'Science' has two operating departments sales and consumer sales, and two support departments – human resources and information systems. corporate Each sales department conducts merchandising and marketing operations independently. The book shop uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2019: Sevice department Operating department Human Informaton Corporate Consumer Total sales system 334,400 resources sales Cost 72,700 998,270 489,860 1,895,230 HR factor - NO of 21 42 28 91 emplees IT factor - processing time (in minutes) 320 1,920 1,600 3,840 Required: a) Allocate the support departments' costs to the operating departments using the direct method. [9 marks] b) Allocate the support departments' costs to the operating departments using the step-down method. Start with HR first. A book shop retailer named 'Science' has two operating departments sales and consumer sales, and two support departments – human resources and information systems. corporate Each sales department conducts merchandising and marketing operations independently. The book shop uses number of employees to allocate human resources costs and processing time to allocate information systems costs. The following data are available for September 2019: Sevice department Operating department Human Informaton Corporate Consumer Total sales system 334,400 resources sales Cost 72,700 998,270 489,860 1,895,230 HR factor - NO of 21 42 28 91 emplees IT factor - processing time (in minutes) 320 1,920 1,600 3,840 Required: a) Allocate the support departments' costs to the operating departments using the direct method. [9 marks] b) Allocate the support departments' costs to the operating departments using the step-down method. Start with HR first.
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Answer Solution 1 Direct method Human resources Information syst... View the full answer
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-1259565403
5th edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
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