Question: i) The support department cost allocation method that completely ignores reciprocal services between support departments is called the: Select one: A. direct method B. step
i) The support department cost allocation method that completely ignores reciprocal services between support departments is called the:
Select one:
A. direct method
B. step down method
C. reciprocal method
D. direct method AND step down method
ii) A professional audit firm charged juniors at $60 per hour, seniors at $200 per hour and the overhead rate for both was 150 per cent on direct labour. The firm added 10 per cent on total cost to arrive at a fee to be charged. If a job took 7 junior hours and 3 senior hours, what was the fee charged?
Select one:
a. 2345
b. 3450
c. 2635
d. 2805
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