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ease provide steps in an excel worksheet
D E C В Allocate service department costs using the reciprocal and step methods (Facilities first). GIVEN User Departments Se
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Answer #1
Total Cost Step Method SERVICE DEPARTMENTS USER DEPARTMENTS
Info System Facilities Computer Program Consulting Training
Direct Cost $50,000 $25,000 $75,000 $110,000 $85,000
Info System (HRS)                       500                     400                             1,100                 600                                                               900
Facilities(Sq Ft )               200,000                         400,000           60,000                                                       800,000
Total Cost Step Method               (50,000)                  6,667                           18,333           10,000                                                         15,000
                          -                 31,667                           93,333         120,000                                                       100,000
            (31,667)                           10,053              1,508                                                         20,106
TOTAL COST AFTER ALLOCATION                        (0)                         103,386         121,508                                                       120,106
WORKING
Allocation Base
Info System Facilities Computer Program Consulting Training
Total Info System                     400                             1,100                 600                                                               900              3,000
Cost $50,000
Info System cost to allocate ($50,000) $6,667 $18,333 $10,000 $15,000
Facilities                         400,000           60,000                                                       800,000     1,260,000
Cost               31,667
Facilities cost to allocate             (31,667)                           10,053              1,508                                                         20,106
Total Cost Reciprocal SERVICE DEPARTMENTS USER DEPARTMENTS
Info System Facilities Computer Program Consulting Training
Direct Cost $50,000 $25,000 $75,000 $110,000 $85,000
Info System (HRS)                       500                     400                             1,100                     600                                                               900
Facilities(Sq Ft )               200,000                         400,000               60,000                                                       800,000
Total Cost Reciprocal               (54,492)
                 7,266                           19,980               10,898                                                         16,348
             4,395.07             (32,084)                       8,790.14           1,318.52                                                   17,580.27
TOTAL COST AFTER ALLOCATION                 (96.93)               181.60                   103,770.54       122,216.92                                                 118,927.87
WORKING
Allocation Base
Info System Facilities Computer Program Consulting Training
Total Info System                     400                             1,100                     600                                                               900               3,000
Cost $50,000
RATIO 54492 $13 $37 $20 $30
Facilities               200,000                         400,000               60,000                                                       800,000       1,460,000
Cost               25,000
RATIO                          14 32084                                   27                          4                                                                 55
total info system 50000 + 14% of Facilities ( Facilities + 13% of Info )
Facilities 25000 + 13 % of Info ( Info + 14% of Facilities )
info A
Facilities B
A 50000 + 14% of B * ( 25000 + 13% of A )
B 25000 + 13% of A * ( 50000 + 14% of B )
A 50000 + .14*25000 + .14*.13A
B 25000 + .13*50000 + .13*.14B
A 54492
B 32084
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