Use the following information for the next 4 questions. The managers of Conch, Inc. want to determine the most accurate allocation of support department costs to operating departments. To make this allocation, the accounting department has collected the following data:
-If the reciprocal method is used, the computer costs allocated to operating department 1 will be
A) $47,031
B) $27,500
C) $30,584
D) $22,000

Question

Use the following information for the next 4 questions. The managers of Conch, Inc. want to determine the most accurate allocation of support department costs to operating departments. To make this allocation, the accounting department has collected the following data: 
-If the reciprocal method is used, the computer costs allocated to operating department 1 will be
A) $47,031 
B) $27,500 
C) $30,584 
D) $22,000

Quizplus · Accepted Answer

The reciprocal method considers the mutual services provided among all support departments. The allocation of computer costs to operating department 1 using this method results in $30,584.

Use the Following Information for the Next 4 Questions