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ACC - Nokia Inc. has two user departments

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Question;Nokia Inc. has two user departments, Wireless Communications & Digital Communications. The two support departments are Technical Support (TS) & Research & Development (R&D). The costs incurred in each of these departments are as follows:Wireless Communications $110,000Digital Communications $60,000TS $80,000R&D $90,000The actual level of support is as follows:Supplied by Used byTS R&D Wireless DigitalTS 20% 50% 30%R&D 30% 25% 45%Determine the cost allocated to:1. Wireless Communications using the direct method2. Digital Communications using the direct method3. Wireless Communications using the step-down method (allocating TS first)4. Wireless Communications using the step-down method (allocating R&D first)5. Wireless Communications using the reciprocal method6. Digital Communications using the reciprocal method

 

Paper#43197 | Written in 18-Jul-2015

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