Z2. RCR has decided to use the direct method and allocate variable X1 dept. costs based on the number of transactions and fixed X1 dept. costs based on the number of employees. X2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided: Total Department variable costs Total department fixed costs Number of transactions Number of employees Support Departments Operating Departments X2 X1 Z1 Z2 15,000 52,500 27,500 45,000 45 112 18 30 12,500 14,500 38 14 95,000 105,000 175 38

Z2. RCR has decided to use the direct method and allocate variable X1 dept. costs based on the number of transactions and fixed X1 dept. costs based on the number of employees. X2 dept. variable costs will be allocated based on the number of service requests and fixed costs will be allocated based on the number of computers. The following information is provided: Total Department variable costs Total department fixed costs Number of transactions Number of employees Support Departments Operating Departments X2 X1 Z1 Z2 15,000 52,500 27,500 45,000 45 112 18 30 12,500 14,500 38 14 95,000 105,000 175 38

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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