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Information technology Operations Technology Operations Processing Administration. 20% 40% 50 20% 10 10% The total costs incurred in the five departments are: Information technology Operations Clains processing Administration Sales Total costs $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Sales 20% 30 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Operating Departments

Information technology Operations Technology Operations Processing Administration. 20% 40% 50 20% 10 10% The total costs incurred in the five departments are: Information technology Operations Clains processing Administration Sales Total costs $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Sales 20% 30 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Operating Departments

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
Section: Chapter Questions
Problem 64P: (Appendix 4B) Support Department Cost Allocation MedServices Inc. is divided into two operating...
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Information technology Operations The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales Total costs Technology Operations. Processing Administration 20% 20% 40% 10 10% 50 a. Direct Method b. Step Method (Info Tech First) Step Method (Operations First) c. Reciprocal Method $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Operating Departments Administration Claims Processing Sales $ Sales 20% 30 $ $ $ Total 0 0 0 0
Transcribed Image Text:Information technology Operations The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales Total costs Technology Operations. Processing Administration 20% 20% 40% 10 10% 50 a. Direct Method b. Step Method (Info Tech First) Step Method (Operations First) c. Reciprocal Method $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Operating Departments Administration Claims Processing Sales $ Sales 20% 30 $ $ $ Total 0 0 0 0
Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Operating Departments Support Departments Information Technology Operations 20% Information technology Operations 10% The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales Total costs a Direct Method b. $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Step Method (Info Tech First) Sten Method (Operations First) Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Claims Processing Administration 20% 40% 10 50 Operating Departments Administration Claims Processing Sales Sales 20% 30 $ $ S Total 0 0 0
Transcribed Image Text:Comprehensive Insurance Company has two product lines: health insurance and auto insurance. The two product lines are served by three operating departments, which are necessary for providing the two types of products: claims processing, administration, and sales. These three operating departments are supported by two departments: information technology and operations. The support provided by information technology and operations to the other departments is shown below. Operating Departments Support Departments Information Technology Operations 20% Information technology Operations 10% The total costs incurred in the five departments are: Information technology Operations Claims processing Administration Sales Total costs a Direct Method b. $ 633,000 1,780,000 270,000 555,000 650,000 $3,888,000 Step Method (Info Tech First) Sten Method (Operations First) Required: Determine the total costs in each of the three operating departments, after departmental allocations, using (a) the direct method, (b) the step method (first for information technology going first in the allocation and then for operations going first), and (c) the reciprocal method. (Do not round intermediate calculations. Round final answers to the nearest dollar.) Claims Processing Administration 20% 40% 10 50 Operating Departments Administration Claims Processing Sales Sales 20% 30 $ $ S Total 0 0 0
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