Question: Total Dept. Costs $ 27 90 Dept. Name Dept. Type Support Facility Support Human Resources Support Automotive Production Aviation Production 74 2,100 1,450 Other Info
Total Dept. Costs $ 27 90 Dept. Name Dept. Type Support Facility Support Human Resources Support Automotive Production Aviation Production 74 2,100 1,450 Other Info floor space (m) #employees # computers Facility . 10 10 HR 200 8 12 IT 100 25 20 Automotive Aviation Total 1,500 1,200 3,000 100 75218 60 122 20 Instructions a) Allocate Support Department costs using the step-down method. Support department costs are first allocated from the department with the most costs. b) Besides the Step-down method, identify and briefly explain two other ways discussed in class and in the Horngren textbook in which support department costs can be allocated. Indicate at least tone benefits and drawbacks to each approach. (do not calculate - just briefly explain) c) Allocate Support Department costs using one of the methods identified in Part B
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