Novak Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Costs Hours Used Sq Feet Facilities $18,000 300 Information Systems 76,000 101,000 Operating Unit Consulting 88,000 600 202,000 Software 67,000 300 404,000 Training 108.000 3,000 606,000 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 O decimal places, e.g. 5,275.) Consulting $ Software $ Training $
Novak Computer Concepts has three operational units and two support units. Information on the departments is as follows Support Departments Costs Hours Used Sq Feet Facilities $18,000 300 Information Systems 76,000 101,000 Operating Unit Consulting 88,000 600 202,000 Software 67,000 300 404,000 Training 108.000 3,000 606,000 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 O decimal places, e.g. 5,275.) Consulting $ Software $ Training $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Give me correct answer with explanation.j
Transcribed Image Text:Novak Computer Concepts has three operational units and two support units. Information on the departments is as follows
Support Departments
Costs
Hours Used
Sq Feet
Facilities
$18,000
300
Information Systems
76,000
101,000
Operating Unit
Consulting
Software
Training
88,000
600
202,000
67,000
300
404,000
108,000
3,000
606,000
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 O decimal places, e.g. 5,275.)
Consulting
$
Software
$
Training
$
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