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Required information [The following information applies to the questions displayed below.] Gipps Business College (GBC) has t

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Answer #1
1) Direct Method
Particulars IT EP CS UG GRAD
Direct costs $ 182,000.00 $ 138,000.00 $ 244,000.00 $                 -   $                 -  
Allocating costs of:
IT (4:3) $(182,000.00) $ 104,000.00 $   78,000.00
EP (1:2) $(138,000.00) $   46,000.00 $   92,000.00
CS (3:2) $(244,000.00) $ 146,400.00 $   97,600.00
$ 296,400.00 $ 267,600.00
2) Step Method
Particulars IT EP CS UG GRAD
Direct costs $ 182,000.00 $ 138,000.00 $ 244,000.00 $                 -   $                 -  
Allocating costs of:
IT (1:2:4:3) $ (182,000.00) $    18,200.00 $    36,400.00 $   72,800.00 $   54,600.00
Balance $                   -   $ 156,200.00 $ 280,400.00 $   72,800.00 $   54,600.00
EP (1:1:2) $(156,200.00) $    39,050.00 $   39,050.00 $   78,100.00
Balance $                   -   $ 319,450.00 $ 111,850.00 $ 132,700.00
CS (3:2) $(319,450.00) $ 191,670.00 $ 127,780.00
Balance $ 303,520.00 $ 260,480.00
3) Let total cost of IT, EP and CS be x, y and z
x = $ 182000
y = $ 138000 + 10% of x y = $ 156200
z = $ 244000 + 20% of x + 25% of y z = $ 319450
Particulars IT EP CS UG GRAD
Direct costs $ 182,000.00 $ 138,000.00 $ 244,000.00 $                 -   $                 -  
Allocating costs of:
IT (1:2:4:3) $ (182,000.00) $    18,200.00 $    36,400.00 $   72,800.00 $   54,600.00
EP $(156,200.00) $    39,050.00 $   39,050.00 $   78,100.00
CS $(319,450.00) $ 191,670.00 $ 127,780.00
Balance $ 303,520.00 $ 260,480.00
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