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indicate the following ) For the first quarter of 2012, Hudson\'s cost records l

ID: 2587597 • Letter: I

Question

indicate the following ) For the first quarter of 2012, Hudson's cost records lick the icom ne rement 1a nswers to th and round your xes) SUPPORT OPERATING AS IS GOVT CORP Total t Method Budgeted costs incurred before any geted overhe 690,000 S 2.400.000 8,825,000 S 12,425,000 $ 24,340,000 forenr Support work supplied by AS cation of AS ( cation of IS co Budgeted number of interdepartment cost allocations budgeted head count) Support work supplied by IS 20% 48% 32% 100% al budgeted ov 10% 36% 54% 100% | quirement 1b culations and r ar swer boxes d interim bsts. Complete Pnnt Done As GOVT

Explanation / Answer

1.a Direct method:

1.b.

Step down method:

AS IS GOVT CORP Total Budgeted overhead costs before inter departmental cost allocation $690,000 $2,400,000 $8,825,000 $12,425,000 $24,340,000 Allocation of AS costs(48/80,32/80) (690,000) $414,000 $276,000 0 Allocation of IS costs(36/90,54/90) (2,400,000) $960,000 $1,440,000 0 Total budgeted overhead of operating departments 0 0 $10,199,000 $14,141,000 $24,340,000