Blue Dot Company budgeted the following manufacturing overhead costs for the 2020 fiscal year. Accounting...
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Accounting
Blue Dot Company budgeted the following manufacturing overhead costs for the 2020 fiscal year. Accounting & finance (support department) $500,000 Human resources (support department) $110,000 Industrial design (operating department) $315,000 Production (operating department) $175,000 Budgeted services provided by the Accounting & Finance department: Human resources 20% Industrial design 30% Production 50% Budgeted services provided by the Human Resources department: Accounting & finance Industrial design Production 15% 65% 20% Required: (A) Using the information provided above, allocate costs from the supporting departments to the operating departments using the Direct Method. O N n prime video w acer Required: (A) Using the information provided above, allocate costs from the supporting departments to the operating departments using the Direct Method. (B) Ignoring your calculations in (A), use the information provided above to allocate costs from the supporting departments to the operating departments using the Step Down method with the Accounting & Finance department allocating first. (C) Ignoring your calculations in (A) and (B), use the information provided above to allocate costs from the supporting departments to the operating departments using the Step Down method with the Human Resources department allocating first. (D) Ignoring your calculations in (A) to (C), use the information provided above to allocate costs from the supporting departments to the operating departments using the Reciprocal Method using either linear equations or repeated iterations. 2


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