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Data Performance, a computer software consulting company, hasthree major functional areas: computer programming, informationsystems consulting, and software training. Carol Bingham, a pricinganalyst, has been asked to develop total costs for the functionalareas. These costs will be used as a guide in pricing a newcontract. In computing these costs, Carol is considering threedifferent methods of the departmental allocation approach toallocate overhead costs: the direct method, the step method, andthe reciprocal method. She assembled the following data from thetwo service departments, information systems and facilities:

	Service Departments			ProductionDepartments
	Information Systems	Facilities	Computer Programming	Information Systems Consulting	Software Training	Total
Budgeted overhead (base)	$70,000	$39,000	$166,000	$200,000	$139,000	$614,000
Information Systems (computer hours)		1,200	600	1,200	3,000	6,000
Facilities (square feet)	240		480	480	1,200	2,400

Required:

1. Using computer usage time as the allocation base for theinformation systems department and square feet of floor space asthe application base for the facilities department, apply overheadfrom these service departments to the production departments, usingthese three methods:

a. Direct method.

b. Step method (both for the information systems departmentgoing first and for the facilities department going first).

c. Reciprocal method.

(Round percentage calculations to 4 decimal places(e.g., 33.3333%). For all requirements, Do not round yourintermediate calculations. Round your final answers to nearestwhole dollar amount.)

Required:

1. Using computer usage time as the allocation base for theinformation systems department and square feet of floor space asthe application base for the facilities department, apply overheadfrom these service departments to the production departments, usingthese three methods:

a. Direct method.

b. Step method (both for the information systems departmentgoing first and for the facilities department going first).

c. Reciprocal method.

(Round percentage calculations to 4 decimal places(e.g., 33.3333%). For all requirements, Do not round yourintermediate calculations. Round your final answers to nearestwhole dollar amount.)

Required:

1. Using computer usage time as the allocation base for theinformation systems department and square feet of floor space asthe application base for the facilities department, apply overheadfrom these service departments to the production departments, usingthese three methods:

a. Direct method.

b. Step method (both for the information systems departmentgoing first and for the facilities department going first).

c. Reciprocal method.

(Round percentage calculations to 4 decimal places(e.g., 33.3333%). For all requirements, Do not round yourintermediate calculations. Round your final answers to nearestwhole dollar amount.)

Programing consulting training Tatal

a direct method

b step method information systems department going first

step method facilities department going first

c reciprocal method