Indigo Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Sq Feet Facilities Information Systems Operating Unit Consulting Software Training Consulting Software Training Costs $24,000 78,000 $ 95,000 67,000 110,000 Hours Used 400 Dean Moore, in the accounting department, has been asked to determine the total cost of each operating unit. The information systems department allocates costs based on the hours used. At the same time, facilities allocate costs based on the square footage. The company currently uses the reciprocal method to allocate support department costs. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) 100,000 700 200,000 350 400,000 600,000 3,500

Indigo Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Sq Feet Facilities Information Systems Operating Unit Consulting Software Training Consulting Software Training Costs $24,000 78,000 $ 95,000 67,000 110,000 Hours Used 400 Dean Moore, in the accounting department, has been asked to determine the total cost of each operating unit. The information systems department allocates costs based on the hours used. At the same time, facilities allocate costs based on the square footage. The company currently uses the reciprocal method to allocate support department costs. (Do not round the intermediate calculations. Round answers to 0 decimal places, e.g. 5,275.) 100,000 700 200,000 350 400,000 600,000 3,500

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 3E: For each of the following support departments, identify a cost driver that could be used for...

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