(%) n 15-2 (similar to) Question Help , Trekk Tours provides guided educational

Question

(%) n 15-2 (similar to) Question Help , Trekk Tours provides guided educational tours to college alumni associations. The company is divided 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 requirements What are the total overhead costs of the operating de Technology have been allocated using (a) the direct Requirements dollar) X the nearest Direct Method 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, (b) the step-down method (allocate Administration first). (c) the step-down method (allocate Information Technology first), and (d) the reciprocal method using the method of repeated iterations and linear equations? Budgeted overhead costs before interdepartment cost allocations Allocation of Administration costs Allocation of Information Technology costs Total budgeted overhead of operating departments Print Done Information What are the total overhead costs of the operating de Technology have been allocated using (b) the step-dol input in the cell to the nearest dollar Complete all allocating costs) the amount you s by Cunnort Denartmente Onaratinn lenartments Enter any number in the edit fields and then click Check Answer Clear All Check Ans 4 lananing

Explanation / Answer

(c) Step-down Method (allocated Information Technology first)

Step-down Method Support Departments Operating Departments Administration Information Technology Domestic
Tours World
Tours Budgeted overhead costs before interdepartment cost allocations 400000 300000 1350000 1860000 Allocation of Information Technology costs 30000 -300000 210000 60000 Allocation of Administration costs -430000 0 179167 250833 Total budgeted overhead of operating departments $ 0 0 1739167 2170833

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