As the managing partner of Metlock Accounting Services (HAS). Adam is trying to compare the profitability results of the firm's threedifferent business lines: Audit, Tax, and Advisory Services. These three operating divisions are supported by three supportdepartments: Billing, Human Resources, and IT. The cost drivers (or allocation bases) for each of the support departments, along witheach department's usage of those services and its own original costs, are as follows.Support DepartmentsOperating DivisionsBillingHRITAuditТахAdvisoryTotalsOriginal cost$67,000$110,000 $89,000 $506,000$815,000 $311,000$1,898,000Billing hours used2,0001,4006004,000Number of employees2211215335IT hours used1002002009006003002,300 Rank the three support departments based on the percentage of their service provided to other support departments, and thenallocate their costs using the step method. (Round intermediate calculations to 4 decimal places, eg. 15.2516 and final answers to 2decimal places, eg. 15.25.)TotalAuditTaxAdvisoryTotal

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Answered: As the managing partner of Metlock…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 6EA: As manager of department B in MarIeys Manufacturing, based on the costs you identified in the...

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As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?
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