2.3 calc
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Subject
Finance
Date
Apr 3, 2024
Type
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Question 1
Div0
$3.10 Time
Div
g
2% forever
0
$3.10 1
$3.16 Div10?
$3.779 2
$3.23 3
$3.29 Question 2
4
$3.36 5
$3.42 Div0
$2.15 6
$3.49 g1
20% 1-4
7
$3.56 g2
2% 5-forever
8
$3.63 9
$3.70 Div5?
$4.547 10
$3.779 Question 3
Earnings $25,000,000 million
Retention Ratio
30%
Payout Ratio
70%
Retained Earnings
$7,500,000 Historical ROE
12%
Earnings_1
$25,900,000 g
3.600% g = retention ratio * ROE
Question 4
Div
$15 Price
$120 r?
0.1250
r = Div/price
Question 5
Div
$8 r
9%
price?
$88.889 P = Div/r
Questions 6 - 8
Microsoft Corp (MSFT) has the following financial information:
Sales
211.92 billion
Suppose the Texas Oil Company just paid a dividend of $3.10 per share. Th
The Abbott Company just paid a dividend of $2.
Whitmore Inc. just reported earnings of $25 million. It plans to retain 30% Jokoy Inc. has an issue of preferred stock outstanding that pays a dividend o
Coconut Co. has an issue of preferred stock outstanding that pays a dividend
Net income
72.36 billion
Total Book Equity
194.68 billion
Price Per Share
$318.02 Shares Outstanding
7.43 billion
Benchmarks:
Price / Earnings
21.49
Price / Sales
2.4
Price / Book
3.79
EPS
9.7388963660835
Valuation
209.28888290713
Sales Per Share
28.522207267833
Valuation
68.4532974428
BV Equity Per Share
26.201884253028
Valuation
99.305141318977
Question 9
Div1
$2 P0 = Div1/(r-g)
g
3% forever
r
7.25%
price?
$47.06 Question 10
Div0
$3 Time
Div
Price
$317 0
$3 g
3% forever
1
$3.09 r?
3.9464%
6. Given the provided information, calculate the comparable valuation price based on Price / E
7. Given the provided information, calculate the comparable valuation price based on Price / S
8. Given the provided information, calculate the comparable valuation price based on Price / B
Rudy-G Co. will pay a dividend of $2 per share next year. The dividends ar
Microsoft just paid a dividend of $3 per share. The price of the stock is $31
Question 11
Div0
$3.25 g
3%
r
6%
Price per share?
$111.58 Question 12
g
2% 6-forever
Time
Div
TV
r
7%
1
$10 2
$8 P0?
$118.99 3
$8 4
$6 5
$6 $122.40 6
$6.12 Question 13
Div0
$1.82 Time
Div
TV
g1
35% 1-5
0
$1.82 g2
2% 6-forever
1
$2.46 r
9%
2
$3.32 3
$4.48 P0?
$95.38 4
$6.05 5
$8.16 $118.92 6
$8.32 Question 14
g2
5% 7-forever
Shares Outs
7.43 million
r
8%
Comparable P/E
21
($ in Billions)
1
2
3
4
5
Sales
232
244
256
269
282
Costs
120
126
132
139
146
EBIT
112
118
124
130
136
Taxes
40
42
44
46
48
OCF (net income)
72
76
80
84
88
Darden Inc. just paid a dividend of $3.25. The dividends are expected to gro
West Side Co. expects the following dividends to be paid over the next 5 ye
Clue Co. just paid a dividend of $1.82 per share. The dividends are expecte
Microsoft Co. has the following projected sales, costs, net investment, and f
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Net investment
50
53
55
58
61
FCF
22
23
25
26
27
Terminal Val 933.3333333
22
23
25
26 960.3333333
Market Cap
$732.63 P0?
$98.60 Question 15 ($ in Billions)
1
2
3
4
5
Sales
232
244
256
269
282
Costs
120
126
132
139
146
EBIT
112
118
124
130
136
Taxes
40
42
44
46
48
OCF (net income)
72
76
80
84
88
Net investment
50
53
55
58
61
FCF
22
23
25
26
27
Terminal Val
22
23
25
26
27
Market Cap
$1,332.55 P0?
$179.35 Question 16
g1
0
Time
Div
g2
2.50% 3-forever
1 3.991549296
r
9%
2 3.991549296
P0
$60 3 4.091338028
Div1?
3.9915492957747 <<guessed first
Question 17
Straight Voting
Shares Outs
625000
Price
$60 To buy seat (shares)
312501
To buy seat (price)
$18,750,060 Calculate the above company stock price using the P/E comparable approac
Amos, Inc. is expected to pay an equal dividend at the end of the next two y
After completing your corporate finance class, you feel the next challenge a
Question 18
how much will it cost you to buy a seat if the company has 4 directors up fo
Cumulative Voting
To buy seat (%)
0.17
To buy seat (shares)
104166.66666667
To buy seat (price)
$6,250,000 Question 19
Div1
$2.12 r = (Div1/P0) + g
g
3% forever
P0
$42 r?
8.0476%
Question 20
Calculate the dividend yield, assuming the stock sells for $42 per share. (En
DY
0.0504761904762 DY = Div/Price
Div = DY*Price
The next dividend payment will be $2.12 per share. The dividends are antic
Time
Div
0
$2.15 1
$2.58 2
$3.10 3
$3.72 4
$4.46 5
$4.55 he dividends are expected to grow at 2%, forever. Calculate the projected dividend 10 years from
of its earnings and pay the rest as dividends. The historical ROE for the firm is 12%, a figure ex
of $15 annually in perpetuity. If this issue currently sells for $120 per share, calculate the require
d of $8 per year in perpetuity. The required rate of return on this stock is 9%. Calculate the impl
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P0 = Div1/(r-g)
r = (Div1/P0) + g
Earnings. (Round to 3 decimals)
Sales. (Round to 3 decimals)
Book. (Round to 3 decimals)
re expected to grow at 3% per year forever. Calculate the stock price assuming investors require 17. Dividends are expected to grow at 3%, forever. Calculate the implied rate of return on this in
Combine
$10 $8 $8 $6 $128 Combine
$1.82 $2.46 $3.32 $4.48 $6.05 $127.08 6
296
153
143
50
92
ow at 3% forever, and investors require a 6% rate of return on their investment. Calculate the pri
ears: $10, $8, $8, $6, and $6. Afterward, the company pledges to maintain a constant growth rate ed to grow at 35% over the next five years, and then the dividends will grow at 2% forever. Calcu
free cash flow in millions. The anticipated growth rate in free cash flows after year 6 is 5% per ye
64
28
6
296
153
143
50
92
64
28
1932
1960
TV
Combine
3.991549296
62.94366197 66.93521127
$60.00 ch to find the terminal value. (Round to 2 decimals)
years. Thereafter, the dividend will grow at a constant annual rate of 2.5%, forever. The current s
ahead is to serve on the board of directors of Fairbanks Enterprises. Unfortunately, you will be the
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or election and uses cumulative voting?
nter percentages as decimals and round to 4 decimals)
cipated to maintain a growth rate of 3% forever. Calculate the implied rate of return, assuming th
m today. (Round to 3 decimals)
xpected to continue for the foreseeable future. Calculate the projected earnings one year from toda
ed rate of return on the investment. (Enter percentages as decimals and round to 4 decimals)
lied price per share. (Round to 3 decimals)
a 7.25% rate of return on their investment. (Round to 2 decimals)
nvestment. (Enter percentages as decimals and round to 4 decimals)
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ice per share. (Round to 2 decimals)
of 2%, forever. If the required rate of return is 7%, calculate the current share price. (Round to 2
ulate the current price per share if investors require a 9% return on their investment. (Round to 2 ear forever. There are 7.43 billion shares outstanding, and investors require a return of 8% on the
stock price is $60. The appropriate rate of return on the stock is 9%. Calculate the next year's di
e only person voting for you. If the company has 625,000 shares outstanding, and the stock curre
he stock sells for $42 per share. (Enter percentages as decimals and round to 4 decimals)
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ay. (Round to 2 decimals)
Enter the full number, e.g. 5 million should be 5,000,000.
2 decimals)
decimals)
e company's stock and a comparable P/E ratio of 21. Calculate the company stock price using the
ividend payment. (Round to 3 decimals)
ently sells for $60, how much will it cost you to buy a seat if the company uses straight voting?
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constant growth model to find the terminal value. (Round to 2 decimals)
1
$3.779 2
$4.547 3
25,900,000
4
0.1250
5
88.8890
6
209.289
7
68.453
8
99.305
9
47.06
10
0.0395
11
55.79
$108.33 111.5833333
12
118.99
13
95.38
14
0.1
98,604.64 98.60464006
15
0.18
179,347.77
$179.35 16
3.992
17
18,750,060
18
7,500,000
$6,250,000 7500060
19
0.0805
20
0.0505
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Related Questions
Question list
O Question 1
O Question 2
O Question 3
O Question 4
More Info
N
1
2
3
4
5
6
7
8
9
10
To Find F
Given P
FIP
1.1200
1.2544
1.4049
1.5735
1.7623
1.9738
2.2107
2.4760
2.7731
3.1058
K
0.8929
0,7972
0.7118
0.6355
0.5674
0.5066
0.4523
0.4039
Most likely estimates for a project are as follows.
0.3606
0.3220
To Find P
Given F
PIF
Choose the correct choice below.
Determine whether the statement "This project (based upon the most likely estimates) is profitable." is true or false.
✔Click the icon to view the relationship between the PW and the percent change in parameter.
Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year
False
O True
To Find F
Given A
FIA
1.0000
2.1200
3.3744
4.7793
6.3528
8.1152
10.0890
12.2997
14.7757
17.5487
To Find P
Given A
PIA
0.8929
1.6901
2.4018
3.0373
3.6048
4.1114
4.5638
4.9676
5.3282
5.6502
To Find A
Given F
AIF
1.0000
04717
0.2963
0.2092
0.1574
0.1232
0.0991
0.0813
0.0877
0.0570
To Find A
Given P…
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TB MC Qu. 10-42 Perez, Inc. recently completed...
Perez, Inc. recently completed 45,000 units of a product that was expected to consume five pounds of direct material
per finished unit. The standard price of the direct material was $5.50 per pound. If the firm purchased and consumed
233,000 pounds in manufacturing (cost = $1,213,900), the direct-material quantity variance would be figured as:
Multiple Choice
$44,000 U.
$44,000 F.
$67,600 U.
Prt Scn FB
Home F9
F3
F5
F6
End
F10
&
4.
6
7
8.
R
F
G H
K
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Chapter 9 Question 4
Please answer parts a and b with an explanation of how you got the answer.
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Multiple Choice
$56,625.
$64,110
$56,110.
$28.800
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Knight Company owned 80% of the common stock of Stoop Company. Stoop had 50,000 shares of $5 par value common stock and 2,000 shares
of preferred stock outstanding. Each preferred share received an annual per share dividend of $2 and is convertible into four shares of common
stock. Knight did not own any of Stoop's preferred stock. Stoop also had 600 bonds outstanding, each of which is convertible into ten shares of
common stock. Stoop's annual after-tax interest expense for the bonds was $2,000. Knight did not own any of Stoop's bonds. There are no excess
amortizations or intra-entity transactions associated with this consolidation. Stoop reported net income of $300,000 for 2024. Knight has 100,000
shares of common stock outstanding and reported net income of $400,000 for 2024.
What would Knight report as consolidated basic earnings per share?
Note: Round your answer to two decimal places.
Multiple Choice
O $5.68
$6.37
O
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Question Content Area
Present value of $1
Periods
6%
8%
10%
12%
14%
16%
1
0.94340
0.92593
0.90909
0.89286
0.87719
0.86207
2
0.89000
0.85734
0.82645
0.79719
0.76947
0.74316
3
0.83962
0.79383
0.75131
0.71178
0.67497
0.64066
4
0.79209
0.73503
0.68301
0.63552
0.59208
0.55229
5
0.74726
0.68058
0.62092
0.56743
0.51937
0.47611
6
0.70496
0.63017
0.56447
0.50663
0.45559
0.41044
7
0.66506
0.58349
0.51316
0.45235
0.39964
0.35383
8
0.62741
0.54027
0.46651
0.40388
0.35056
0.30503
9
0.59190
0.50025
0.42410
0.36061
0.30751
0.26295
10
0.55839
0.46319
0.38554
0.32197
0.26974
0.22668
Present value of an annuity of $1
Periods
6%
8%
10%
12%
14%
16%
1
0.94340
0.92593
0.90909
0.89286
0.87719
0.86207
2
1.83339
1.78326
1.73554
1.69005
1.64666
0.74316
3
2.67301
2.57710
2.48685
2.40183
2.32163
0.64066
4
3.46511
3.31213
3.16987
3.03735
2.91371
0.55229
5
4.21236
3.99271
3.79079
3.60478
3.43308
0.47611
6
4.91732
4.62288
4.35526
4.11141
3.88867
0.41044
7
5.58238
5.20637…
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6 Question 14 - Quiz #3 - Connect X
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If the government allows firms to immediately expense all investments in assets,
project will
capital projects will be accepted while NPV per
Multiple Choice
More; increase
More; decrease
Fewer: increase
Mc
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A Question 8- Extra Credit- Chapt X
Organization goals include- Bin X+
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Products X, Y, and Z are produced from the same process at a cost of $5,880. Five thousand pounds of raw material yields 2,600 X, 3,600 Y,
and 2,100 Z. Selling prices are: X $2 per unit, Y $4 per unit, and Z valueless. The ending inventory of X is 72 units. What is the value of the
ending inventory if joint costs are allocated using net realizable value?
Multiple Choice
$24.87.
$34.40.
$43.20.
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Multiple Choice
O
Ryan Company purchased 80% of Chase Company for $270,000 when Chase's book value was $300,000. Chase has 50,000 shares outstanding
and currently has a book value of $400,000.
Assume Chase issues 30,000 additional shares common stock solely to Ryan for $12 per share.
What is the new percent ownership Ryan owns in Chase?
90.0%
87.5%
82.5%
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VitalSource Account Center: Use X
chapter05/4/2/28/6/40/2/2/4
G Sign in - Google Accounts
Determine the future value of the following single amounts:
1234
Invested Amount
$15.000
20,000
30,000
50,000
Interest Rate
6%
8
12
4
No. of Periods
12
ខសង
10
20
12
QA
Aug 13, 2023, 12:15 PM
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1
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15
Single Payment
Compound
Amount
Factor
To Find F
Given P
FIP
1.1200
1.2544
1.4049
1.5735
1.7623
1.9738
2.2107
2.4760
2.7731
3.1058
3.4785
3.8960
Discrete Compounding; /= 12%
4.3635
4.8871
5 4736
Present
Worth Factor
To Find P
Given F
PIF
0.8929
0.7972
0.7118
0.6355
0.5674
0.5066
0.4523
0.4039
0.3606
0.3220
0.2875
0.2567
0.2292
0.2046
0 1827
Uniform Series
Compound
Amount Present
Factor
To Find F
Given A
FIA
1.0000
2.1200
3.3744
4.7793
6.3528
8.1152
10.0890
12.2997
14.7757
17.5487
20.6546
24.1331
28.0291
32.3926
37 2797
Worth Factor
To Find P
Given A
ΡΙΑ
0.8929
1.6901
2.4018
3.0373
3.6048
4.1114
4.5638
4.9676
5.3282
5.6502
5.9377
6.1944
6.4235
6.6282
6.8109
Sinking
Fund
Factor
To Find A
Given F
AIF
1.0000
0.4717
0.2963
0.2092
0.1574
0.1232
0.0991
0.0813
0.0677
0.0570
0.0484
0.0414
0.0357
0.0309
0.0268
Capital
Recovery
Factor
To Find A
Given P
AIP
1.1200
0.5917
0.4163
0.3292
0.2774
0.2432
0.2191
0.2013
0.1877
0.1770
0.1684
0.1614
0.1557
0.1509
0 1468
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Question 19- Extra Credit- Chap X
Organization goals include- Bin X +
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Page Company makes 30% of its sales for cash and70% on account 60% of the credit sales are collected in the month of sale, 20% in the
month following sale, and 16% in the second month following sale. The remainder is uncollectible. The following information has been
gathered for the current year.
Month
2.
$67,000 $70,000 $57,000 $37,000
Total sales
Total cash receipts in Month 4 will be:
Multiple Choice
006TS )
556.200
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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
• Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January.
. Collections are expected to be 80% in the month of sale and 20% in the month following the sale.
• The cost of goods sold is 75% of sales.
• The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for
merchandise is made in the month following the purchase.
. Other monthly expenses to be paid in cash are $24,000.
. Monthly depreciation is $15,000.
Ignore taxes.
●
Assets
Cash
Balance Sheet
October 31
Accounts receivable
Merchandise inventory
Property, plant and equipment, net of $572,000 accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
The difference between cash receipts and cash disbursements…
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Chapter 9 Question 7
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9 Question 13- Extra Credit- Chap X
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The Pizza Merchandise Company has budgeted $45,000 in sales for the month of December. The company's cost of goods sold is 30% of
sales. If the company has budgeted to purchase $23,000 in merchandise during December, then the budgeted change in inventory levels
over the month of December is:
Multiple Choice
$9,500 increase.
$8,500 decrease.
$22,000 decrease.
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WAC
Beginning
Balance
$ 150,000
✓ fx
8.600%
CPR%
PASS_THRU RATE
D
SMM%
WAM
Mortgage PMT
Expected
360
Interest$ paid
to Investors
G
ASS_THRU RAT
Scheduled
Principal PMT
H
8.000%
Estimated Principal
Pre-PMT
POOL$
Total Principal
paid to Investors
$
150,000
Total Cash Flow
to Investors
Pool
Fees
PSA
M
100
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TB MC Qu. 10-68 Thomas Enterprises...
Thomas Enterprises purchased 65,200 pounds (cost = $521,600) of direct material to be used in the manufacture of
the company's sole product. According to the production specifications, each completed unit requires five pounds of
direct material at a standard cost of $8.20 per pound. Direct materials consumed by the end of the period totaled
6,2700.00 pounds in the manufacture of 12,900 finished units.
An examination of Thomas' payroll records revealed that the company worked 24,000 labor hours (cost = $326,400)
during the period, and specifications called for each completed unit requiring two hours of labor at a standard cost of
$13.90 per hour. Use the information to compute the following varlances.
Thomas' direct-material price variance was:
Multiple Choice
O $12,540 F.
6.
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9
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Large
speed bump
$
$
$
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1.80
16
2.10
1,920 U
480 U
400
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Question 8
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I Other bookr
s Costing i
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Muckenfuss Clinic uses the step-down method to allocate service department costs to operating departments. The clinic has two service departments, Personnel
and Information Technology (IT), and two operating departments, Family Medicine and Geriatric Medicine. Data concerning those departments follow:
Service Department
Operating Department
Information
Personnel
Technology
Family Medicine
$ 329,020
Geriatric Medicine
$ 49,280
Departmental costs
Employees
$ 23,420
$ 146,420
12
30
120
186
Personnel costs
13
31
80
134
Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs.
The total Geriatric Medicine Department cost after allocations is closest to:
Multiple Choice
$163,734
$191,120
ENG
hp
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octoring Enabled: Midterm 2 i
1
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12
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Boone Company allocates overhead based on direct labor hours. It allocates overhead costs of $4,600 to two different jobs as
Submit
follows:
Job 1: (11 hours) = $2,300; Job 2: (11 hours) = $2,300
The production process for Job 2 was then automated. Now Job 2 requires only two hours of direct labor but four hours of
mechanical processing. As a result, total overhead increased to $6,760. How much overhead cost will be assigned to Job 1 after
automation?
ts
00:46:16
Multiple Choice
$5,720
$3,340
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O Question 11 - Wk 5- Apply: Hon x
Answered You are given $50000 x
https://ezto.mheducation.com/ext/map/index.html?_con=con&external browser=0&launchUrl=https%253A%252F%252Fvle.phoenix.edu%252Fwebapps%252Fpartner-cloud...
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Your company is considering a new project that will require $2,000,000 of new equipment at the start of the project. The equipment will have a depreciable life of 10 years and
will be depreciated to a book value of $250,000 using straight-line depreciation. The cost of capital is 12 percent, and the firm's tax rate is 21 percent Estimate the present
value of the tax benefits from depreciation.
Multiple Choice
$68,250
$207,646
$175,000
S988.789
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Costing i
Blondell Legal Services, Limited Liability Company, uses the step-down method to allocate service department costs to operating departments. The firm has two
service departments, Personnel and Information Technology (IT), and two operating departments, Family Law and Corporate Law. Data concerning those
departments follow:
Service Department
Operating Department
Information
Corporate Law
Technology
$ 45,491
Family Law
$ 357,170
Personnel
$ 49,770
$ 360,490
Departmental costs
Employees
120
176
15
20
30
100
154
15
Personnel costs
Personnel costs are allocated first on the basis of employees and Information Technology costs are allocated second on the basis of Personnel costs.
In the first step of the allocation, the amount of Personnel Department cost allocated to the Family Law Department…
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