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Operating Unit Consulting Software Training 88,000 67,000 108,000 600 202,000 300 404,000 3,000 606,000

Operating Unit Consulting Software Training 88,000 67,000 108,000 600 202,000 300 404,000 3,000 606,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 3DQ
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Novak Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Facilities Information Systems Operating Unit Consulting Software Training Consulting $ Software Training $ Costs $ $18,000 76,000 88,000 67,000 108,000 Hours Used 300 600 300 3,000 Sq Feet Dean Moore, in the accounting department, has been asked to determine the total cost of each operating unit. The information systems department allocates costs based on the hours used. At the same time, facilities allocate costs based on the square footage. The company currently uses the reciprocal method to allocate support department costs. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) 101,000 202,000 404,000 606,000
Transcribed Image Text:Novak Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Facilities Information Systems Operating Unit Consulting Software Training Consulting $ Software Training $ Costs $ $18,000 76,000 88,000 67,000 108,000 Hours Used 300 600 300 3,000 Sq Feet Dean Moore, in the accounting department, has been asked to determine the total cost of each operating unit. The information systems department allocates costs based on the hours used. At the same time, facilities allocate costs based on the square footage. The company currently uses the reciprocal method to allocate support department costs. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) 101,000 202,000 404,000 606,000
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