Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. illawarra consultant (ic) has two support departme

Illawarra Consultant (IC) has two support departments: Information Technology (IT) and Administration (Admin). In addition,...

70.2K

Verified Solution

Question

Accounting

image

Illawarra Consultant (IC) has two support departments: Information Technology (IT) and Administration (Admin). In addition, IC also has two operation departments that deal with two distinct clients, namely, Individual and Corporate department. For the next quarter, the budget of all departments is available below: Support Department Operation Department IT Admin Individual Corporate Total Budgeted costs $ 1,500,000 2,500,000 7,500,000 8,000,000 19,500,000 25% 40% 35% 100% Support work supplied by IT Support work supplied by Admin 30% 30% 40% 100% Required (show your calculation): (5 marks) (a) Allocate the support departments' costs to operation departments using the direct method. (5 marks) (b) Allocate the support departments' costs to operation departments using the step-down method. Use the highest rank of services provided to another support department to be allocated first. (c) Allocate the support departments' costs to operation departments using the reciprocal method. (10 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You are evaluating two contractors for cleaning up Superfund sites. You oversee the cleanup of mining...

Statistics
Q

1. To be accurate in measuring blood pressure, a person should not drink coffee and smoke...

Medical Sciences
Q

In a high school graduating class of 100 students, 53 studied mathematics, 71 studied history,...

Statistics
Q

Find the value of the permutation 5P1 P Type a whole number

Statistics
Q

Zoe Corporation has the following information for the month of March. Purchases $ 92,000 Materials...

Accounting
Q

M2.34Given the information in the above partial MRP record, determine the Net Requirement for Period...

Accounting
Q

Craft Company reports the following partial activity-based costing information for its Deluxe model. Complete the...

Accounting
Q

Additional Notes: Irveritory as at 31 Deomenber, 2023 was vatued at $9.200,000. ...

Accounting
Q

Gifford Company experienced the following accounting events during Year 1: Started operations on...

Accounting
Q

New Business Failure and Success. Identify and research a company that has succumbed to one...

Finance
Q

What do you think would be a consequence to classifying securities improperly?

Accounting
Q

What is your assessment of Dominos financial performance over the 2017 2019 period? (Use...

Finance