QUESTION 4 (6 Marks) Given the following information: Total Department Costs $ 27 Department Name...
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QUESTION 4 (6 Marks) Given the following information: Total Department Costs $ 27 Department Name IT Facility Human Resources Automotive Aviation Dept. Type Support Support Support Production Production 90 74 2.100 1,450 Automotiv IT Facility - 10 10 HR 200 Other Info floor space (m) # employees #computers 100 1,500 100 Aviatio n Total 1.200 3,000 75 218 60122 12 Required: A. Allocate Support Department costs using the step-down method. Support department costs are first allocated from the department with the most costs (3 marks). B. Besides the Step-down method, identify and briefly explain two other ways discussed in class and in the Horngren textbook in which support department costs can be allocated. Indicate at least tone benefits and drawbacks to each approach. (do not calculate - just briefly explain) (2 Marks). C. Allocate Support Department costs using one of the methods identified in Part B (1 mark)
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