Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. support department allocation (17 points) swirl

Support Department Allocation (17 points) Swirl Enterprises has two support departments (S1 and...

50.1K

Verified Solution

Question

Accounting

Support Department Allocation (17 points)

Swirl Enterprises has two support departments (S1 and S2) and two producing departments (A and B). The distribution of services by the support departments is as follows:

Services Provided to

Services Provided from S1 S2 A B

S1 - 10% 65% 25%

S2 24% - 50% 26%

Total department costs for the support and producing departments are as follows:

Department S1 S2 A B

Total Costs $ 65,060 100,000 800,000 724,000

Required:

Allocate the costs of the support department to the producing departments (A and B) using the reciprocal method (round to the nearest dollar) and show the amount of total costs for A and B after the allocation. Show all workings including any algebra equations and the distribution of support department costs.

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students