E14.4 (LO 2), AP Dr. Marj is evaluating her dental practice with her colleague, Dr....
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E14.4 (LO 2), AP Dr. Marj is evaluating her dental practice with her colleague, Dr. Juan. Dr. Marj provides general dental services, while Dr. Juan provides orthodontic care. They utilize shared business services (including human resources, billing, and purchasing) as well as shared maintenance services. Here is a summary of their costs and usages, where business services are allocated based on hours on task and maintenance costs are allocated based on square feet of space. Required a. If a company allocates support department costs using the reciprocal method, does it need to rank the support departments first? Explain why or why not. b. Allocate the support department costs using the reciprocal method in Excel (you may check the reasonableness of each total support department cost estimate by solving by hand). c. How will the two dentists use this cost information to make decisions about their business
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E14.4 (LO 2), AP Dr. Marj is evaluating her dental practice with her colleague, Dr. Juan. Dr. Marj provides general dental services, while Dr. Juan provides orthodontic care. They utilize shared business services (including human resources, billing, and purchasing) as well as shared maintenance services. Here is a summary of their costs and usages, where business services are allocated based on hours on task and maintenance costs are allocated based on square feet of space. Required a. If a company allocates support department costs using the reciprocal method, does it need to rank the support departments first? Explain why or why not. b. Allocate the support department costs using the reciprocal method in Excel (you may check the reasonableness of each total support department cost estimate by solving by hand). c. How will the two dentists use this cost information to make decisions about their business 