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 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 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.
- Spring '12