TI 15-2 (similar to) Question Help Uni Tours provides guided educational tours t

Question

TI 15-2 (similar to) Question Help Uni Tours provides guided educational tours to college alumni associations. The company is dnided into two operating divisions: domestic tours and world tours. Each of the tour divisions uses the services of the company's two support departments: Administration and Information Technology Additionally, the Administration and Information Technology departments use the services of each other. Data concerning the past year are as follows (Click the icon to vew the past year data ) Read the What are the total overhead costs of the operating departments (domestic and world tours) after the support department costs of Administration and Information Technology have been allocated using (a) the direct method? (Do not round intermediary calculations Only round the amount you input in the cell to the nearest dollar.) Direct Method Budgeted overhead costs Requirements before interdepartment cost alogWhat are the total overhe ad costs of the operating departments (domestic and world tours) affer the support department costs of Administration and Information Technology have been allocated using (a) the direct method. (b) the step-down Allocation of Administration costs Allocation of Information Techndlogy method (allocate Administration first). (C) the step-down method (allocate Total budgeted overhead of information Technology first), and (d) the reciprocal method using the method of repeated iterations and linear equations? Print Done Enter any number in ine edt fefds dnd then cick Cneck Ansier ads 6 |.anannq @

Explanation / Answer

Support Departments Operating Departments Admin IT Domestic Tour World tours Budgeted OH cost before cost allocation           600,000           550,000            1,650,000          1,800,000 Allocation of admin (40:110)         (600,000)               160,000              440,000 Allocation of IT (155:60)                       -           (550,000)               396,512              153,488 Total Budgeted cost of operating department            2,206,512          2,393,488

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