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Steven is now curious if the same thing would be true in his company. Here is the cost and allocation base usage information for all key departments in his company. Costs C's time (in hours) provided to D's time (in hours) provided to Direct method Reciprocal method Difference Support Departments $ C $ $90,200 200 D $149,800 N 400 Operating Departments $548,000 Use (1) the direct method and (2) the reciprocal method to allocate these support department costs. How similar are the results under these methods in Steven's company? (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts with either a sign e.g. -15.25 or in parenthesis e.g. (15.25).) N Support Department Cost Allocation Comparison $ $ 800 600 $805,000 300 800

Steven is now curious if the same thing would be true in his company. Here is the cost and allocation base usage information for all key departments in his company. Costs C's time (in hours) provided to D's time (in hours) provided to Direct method Reciprocal method Difference Support Departments $ C $ $90,200 200 D $149,800 N 400 Operating Departments $548,000 Use (1) the direct method and (2) the reciprocal method to allocate these support department costs. How similar are the results under these methods in Steven's company? (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts with either a sign e.g. -15.25 or in parenthesis e.g. (15.25).) N Support Department Cost Allocation Comparison $ $ 800 600 $805,000 300 800

FINANCIAL ACCOUNTING
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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(b) Steven is now curious if the same thing would be true in his company. Here is the cost and allocation base usage information for all key departments in his company. Costs C's time (in hours) provided to D's time (in hours) provided to Direct method Reciprocal method Difference Support Departments $ с $ $90,200 200 D $149,800 N 400 N $548,000 Use (1) the direct method and (2) the reciprocal method to allocate these support department costs. How similar are the results under these methods in Steven's company? (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts with either a - sign e.g. -15.25 or in parenthesis e.g. (15.25).) Operating Departments Support Department Cost Allocation Comparison $ 800 $ 600 $805,000 300 800
Transcribed Image Text:(b) Steven is now curious if the same thing would be true in his company. Here is the cost and allocation base usage information for all key departments in his company. Costs C's time (in hours) provided to D's time (in hours) provided to Direct method Reciprocal method Difference Support Departments $ с $ $90,200 200 D $149,800 N 400 N $548,000 Use (1) the direct method and (2) the reciprocal method to allocate these support department costs. How similar are the results under these methods in Steven's company? (Round answers to 0 decimal places, e.g. 5,125. Enter negative amounts with either a - sign e.g. -15.25 or in parenthesis e.g. (15.25).) Operating Departments Support Department Cost Allocation Comparison $ 800 $ 600 $805,000 300 800
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