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Use the following data to prepare a model that allocates the support departments using the three methods (direct, sequential, and reciprocal). Pay attention to the following instructions: 1. You should design your model to include an input section, an output section, and user instructions. 2. The output section should have nothing but references and formulas in it. 3. For the sequential method, allocate the support department with the highest cost first. 4. For the reciprocal method, either calculate the reciprocal amounts using a formula in Excel or use iterative equations to calculate the amounts. Do NOT type the amounts in. Producing Departments Assembly $45,000 Support Departments General Factory Receiving $160,000 3,400 Finishing $72,000 Departments Direct Overhead $325,000 Square Footage 5,300 4,700 # of Receiving Orders 300 1,650 2,050

Use the following data to prepare a model that allocates the support departments using the three methods (direct, sequential, and reciprocal). Pay attention to the following instructions: 1. You should design your model to include an input section, an output section, and user instructions. 2. The output section should have nothing but references and formulas in it. 3. For the sequential method, allocate the support department with the highest cost first. 4. For the reciprocal method, either calculate the reciprocal amounts using a formula in Excel or use iterative equations to calculate the amounts. Do NOT type the amounts in. Producing Departments Assembly $45,000 Support Departments General Factory Receiving $160,000 3,400 Finishing $72,000 Departments Direct Overhead $325,000 Square Footage 5,300 4,700 # of Receiving Orders 300 1,650 2,050

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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reciprocal method

Use the following data to prepare a model that allocates the support departments using the three methods (direct, sequential, and reciprocal). Pay attention to the following instructions: 1. You should design your model to include an input section, an output section, and user instructions. 2. The output section should have nothing but references and formulas in it. 3. For the sequential method, allocate the support department with the highest cost first. 4. For the reciprocal method, either calculate the reciprocal amounts using a formula in Excel or use iterative equations to calculate the amounts. Do NOT type the amounts in. General Factory $325,000 Support Departments Receiving $160,000 Producing Departments Assembly $45,000 Finishing $72,000 Departments Direct Overhead Square Footage # of Receiving Orders 3,400 5,300 4,700 2,050 300 1,650
Transcribed Image Text:Use the following data to prepare a model that allocates the support departments using the three methods (direct, sequential, and reciprocal). Pay attention to the following instructions: 1. You should design your model to include an input section, an output section, and user instructions. 2. The output section should have nothing but references and formulas in it. 3. For the sequential method, allocate the support department with the highest cost first. 4. For the reciprocal method, either calculate the reciprocal amounts using a formula in Excel or use iterative equations to calculate the amounts. Do NOT type the amounts in. General Factory $325,000 Support Departments Receiving $160,000 Producing Departments Assembly $45,000 Finishing $72,000 Departments Direct Overhead Square Footage # of Receiving Orders 3,400 5,300 4,700 2,050 300 1,650
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