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United Partners provides management consulting services to-(Answered)

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Question

United Partners provides management consulting services to government and corporate clients. United has two support departments ? Administrative Services (AS) and Information Systems (IS) and two operating departments ?Government Consulting (GC) and Corporate Consulting (CC). For the first quarter of 2013 United?s records indicate the following:

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? SUPPORT ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? OPERATING

AS

IS

GC

CC

Budgeted overhead costs before any interdepartmental cost allocations

$600,000

$2,400,000

$8,756,000

$12,452,000

Support work supplied by AS (budgeted head count)

-

25%

40%

35%

Support work supplied by IS (budgeted computer time)

10%

-

30%

60%

  • Required:
  • Allocate the two support department costs to the two operating departments using the following methods:

a. Direct method???

b. Step-down method (allocate AS first)

2. Compare and explain differences in the support department costs allocated to each operating department.????????????????

?????????????????????????????????????????????????????? ???????????


United Partners provides management consulting services to government and corporate clients. United has two support departments - Administrative Services (AS) and Information Systems (IS) and two...

 

Paper#9257119 | Written in 27-Jul-2016

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