Indigo Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Costs Sq Feet Facilities $24,000 Information Systems 78,000 Operating Unit Consulting Software Training 95,000 67,000 110,000 Hours Used 400 700 100,000 200,000 350 400,000 3,500 600,000 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.)

Indigo Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Costs Sq Feet Facilities $24,000 Information Systems 78,000 Operating Unit Consulting Software Training 95,000 67,000 110,000 Hours Used 400 700 100,000 200,000 350 400,000 3,500 600,000 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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