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Assignment5aFacultyLabVersion

Assignment5aFacultyLabVersion - Custom Menu Pearson...

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Pearson Interactive Computer Assignments Assignment 5a: Allocating Costs Of Support Departments, Dual Rates Registered User: Yang Xu Student Number: 307198650 Budgeted Levels of Service -------------------------- Used By -------------------------------- Supplied By EM IS Rail Road Support Departments Fixed Costs Variable Costs EM 0% 10% 30% 60% EM $300,000 $540,000 IS 20% 0% 50% 30% IS $80,000 $75,000 Actual Levels of Service -------------------------- Used By -------------------------------- Actual Transport Miles: Supplied By EM IS Rail Road Rail 15,000,000 EM 0% 20% 40% 40% Road 12,000,000 IS 25% 0% 55% 20% REQUIRED: Allocate the support costs to the two transportation departments using the (a) Direct (b) Step-down (allocate EM first) & (c) Reciprocal methods. (a) Direct Method Support Departments Transport Departments EM IS Rail Road Fixed Costs $300,000 $80,000 n/a n/a EM $(300,000) n/a $100,000 $200,000 IS n/a $(80,000) 50,000 30,000 $- $- $150,000 $230,000 Variable Costs $540,000 $75,000 n/a n/a EM $(540,000) n/a $270,000 $270,000 IS n/a $(75,000) 55,000 20,000 $- $- $325,000 $290,000 (b) Step-Down Method Support Departments Transport Departments EM
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