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Samsung has two operatinguser departments, Gen 4 & Gen 5. The two support departments are...

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Accounting

Samsung has two operatinguser departments, Gen 4 & Gen 5. The two support departments are Information Technology (IT) & Product Development (PD). The costs incurred in each of these departments are as follows:
Gen 4
$300,000
Gen 5
$480,000
IT
$60,000
PD
$150,000
The actual level of support isas follows:
Supplied by
Used by
IT
PD
Gen 4
Gen 5
IT
10%
30%
60%
PD
20%
25%
55%
Determine the cost allocated to:
Gen 4 using the direct method
Gen 5 using the direct method
Gen 4 using the step-down method (allocatingIT first)
Gen 4 using the step-down method (allocatingPD first)
Gen 4 using the reciprocal method
Gen 5 using the reciprocal method

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