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United Partners provides management consulting services to-(Answered)

Description

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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.????????????????


Cost Allocation

 

1. Allocating the support department costs to the operating departments.

 

a). Direct method- no service department costs are allocated to the other

 

service departments.

 

Department...

 

Paper#9257309 | Written in 27-Jul-2016

Price : $16
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