Rule 2 if they are equal allocate the support

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Unformatted text preview: ort department with the highest overhead costs first. Rule 3: Once a support department’s costs have been allocated you do not allocate costs back to that department. Initial distribution S1 40,000 S2 20,000 S3 20,000 P1 80,000 P2 40,000 Reallocate Reallocate Reallocate iii) Reciprocal method Equation 1: S1= Equation 2: S2= Equation 3: S3= S1 S2 S3 P1 P2 Initial distribution 40,000 20,000 20,000 80,000 40,000 Reallocate S1 Reallocate S2 Reallocate S3 4...
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This note was uploaded on 04/21/2012 for the course ACCG 101 taught by Professor Aas during the Spring '12 term at Alabama.

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