Question: Using the? step-down method, this approach would result in the following? sequence: Info. HR Systems Corporate Consumer Total Costs incurred $ 60,000 $280,000 $ 950,000
Using the? step-down method, this approach would result in the following? sequence:
Info. HR Systems Corporate Consumer Total Costs incurred $ 60,000 $280,000 $ 950,000 $480,000 $1,770,000 Allocation of HR costs (60,000) 33,000 27,000" Allocation of Info. System costs (280,000) 152,174 127,826 Total budgeted costs of operating departments Requirement 2. Rank the support departments based on the percentage of their services provided to other support departments. Use this ranking to allocate the support departments costs to the operating departments based on the step-down method. 0 $1,135,174" $ 634,826" $1,770,000 $ $ 0 First, rank, from highest to lowest, the support departments based on the percentage of their services provided to other support departments. (Round percentages to five decimal places.) Support department Percentage Human Resources 20.00... % Information Systems 8.00000 % Next, use this ranking to allocate the support departments' costs to the operating departments based on the step-down method. (Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs Enter a "0" for any zero balances.) Support Operating Departments Departments Info. HR Systems Corporate Consumer _ Total Costs incurred $ 60,000 $280,000 $950,000 $480,000 $1,770,000 Allocation of HR costs (60,000) __ 12,000 26,400 21,600 $ 2 292,000 Allocation of Info. System costs. (292,000) _ 158,696 _ 133,304 Total budgeted costs of operating depatinens S_0 $1195... $694904 $1,770,000 Requirement 3. How could you have ranked the support departments differently? You can rank |~ books' support departments using an alternative approachranking based on the dollar amount of services rendered to other support departments. Using the step-down method, this approach would result in the following sequence: Step % [Allocate HR costs W Step [Allocate Info. Zz Systems costs