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natka813 [3]
3 years ago
13

Perez Corporation’s computer services department assists two operating departments in using the company’s information system eff

ectively. The annual cost of computer services is $583,000. The production department employs 40 employees, and the sales department employs 13 employees. Perez uses the number of employees as the cost driver for allocating the cost of computer services to operating departments. Required Allocate the cost of computer services to operating departments.
Business
1 answer:
ollegr [7]3 years ago
3 0

Answer:

Production department $440,000

Sales department $143,000

Explanation:

The allocation of the total cost to the operating departments is proportional to the number of employees. In other words, as the number of employees increases, so does the allocated cost and vice versa.

Hence,

Cost allocated to the production department

= 40/(40 + 13) × $583,000

= 40/53 × $583,000

= $440,000

Cost allocated to the sales department

= 13/(40 + 13) × $583,000

= 13/53 × $583,000

= $143,000

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4 years ago
Based on the parkerian hexad, what principles are affected if we lose a shipment of encrypted backup tapes that contain personal
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Possession or control

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3 0
3 years ago
when attending a networking event, question 23 options: meet one person and make sure they understand what your business is. tel
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Networking is the exchange of information and ideas between people who share common professions or special interests, usually in informal social settings. Networking often starts with common ground.

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4 0
2 years ago
Stealth Fitness Center issues 7%, 15-year bonds with a face amount of $200,000. The market interest rate for bonds of similar ri
Vladimir [108]

Answer:

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8 0
3 years ago
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to calculate Smiths
OleMash [197]

Answer:

The correct answr is C.

Explanation:

Giving the following information:

Cost Machine Hours

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4 0
3 years ago
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