Question
Homework: Chapter 15 Homework Score: 0 of 1 pt E1 2 of 4 (2 complete) HW Score: 49.28%, 1 .97 of 4 pts Data Table (IS first) SUPPORT OPERATING Support Departments Operating Departments AS IS GOVT CORP Total AS IS GOVT CORP Total Budgeted overhead costs before any $ 660,000$ 3,300,000 7,325,000 $ 12,550,000$. 23,835,000 interdepartment cost allocations Support work supplied by AS budgeted head count) Support work supplied by IS budgeted computer time) $660,0003,300,000 S 7,325,000 S 12,550,000 S 23,835,000 330,000 (3,300,000) ,0002,079,000 48% 100% $990,000 (990,000) 594,000 396,000 10% 27% 100% S 8,810,000 S 15,025,000 S 23,835,000 d of operating departments Print Done Print Done Direct method Support Departments Operating Departments Direct Method AS IS GOVT CORP Total Budgeted overhead costs before interdepartment cost allocations Allocation of AS costs Allocation of IS costs Total budgeted overhead of operating departments 680.000 S 3.300.000$ 7,325,000 $ 12,550.00023,835,000 396,000 990,000 (660,000) 264,000 (3,300,000) 2,310,000 0 S 0 $ 8,711,000 $ 15,124,000 $ 23,835,000 Check Answer Print Done
Explanation / Answer
First, determine the linear equations for each support department.
AS = $660,000 + 0.10 IS
IS = $3,300,000 + 0.20 AS
