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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