3 /990%Question 1: Support Department cost allocationComputer Horizons Ltd. manufactures computers. The company has two corporate supportdepartments (legal and personnel) in supporting each other and two manufacturingdepartments, the Laptop department and the Workstation department.The overhead costs of support departments are allocated to the manufacturing departments.Legal hours are used to allocate the cost of legal department, and personnel hours are usedto allocate the cost of personnel department. The budgeted overhead costs and costallocation bases are given below:Support DepartmentsManufacturing DepartmentsLegalPersonnelLaptopWorkstationOverhead Costs before anyinter department costallocations$9,055$4,000$240,000$200,000Support Work provided byLegal DepartmentLegal hours23720Support work provided byPersonnel DepartmentPersonnel hours4030200160Required:Report the total costs of the manufacturing departments (Laptop and Workstation) after thesupport departments' (Legal and Personnel) costs have been allocated using each of theSAO Which side..doCXTopic 6 Decision...pptSAQ Big Five Pers...do Support work provided byPersonnel Department40200160Personnel hoursRequired:Report the total costs of the manufacturing departments (Laptop and Workstation) after thesupport departments' (Legal and Personnel) costs have been allocated using each of thefollowing methods:i.Direct Methodii.Step Down Method (allocate Legal department's cost first)iii.Reciprocal MethodACCT6004 Assessment 2 Brief_Individual Case StudySAO E30

Total Cost: Total cost is defined as the total cost incurred for the production of a given level of…

Question 1: support Departim Computer Horizons Ltd. manufac departments (legal and persom departments, the Laptop departr The overhead costs of support de Legal hours are used to allocate to allocate the cost of person allocation bases are given below Overhead Costs before any inter department cost allocations Support Work provided by Legal Department

Question 1: support Departim Computer Horizons Ltd. manufac departments (legal and persom departments, the Laptop departr The overhead costs of support de Legal hours are used to allocate to allocate the cost of person allocation bases are given below Overhead Costs before any inter department cost allocations Support Work provided by Legal Department

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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