Computer Information Services Is a Computer Software Consulting Company

question 64

Essay

Computer Information Services is a computer software consulting company.Its three major functional areas are computer programming,information systems consulting,and software training.Carol Birch,a pricing analyst in the Accounting Department,has been asked to develop total costs for the functional areas.These costs will be used as a guide in pricing a new contract.In computing these costs,Birch is considering three different methods of allocating overhead costs-the direct method,the step method,and the reciprocal method.Birch assembled the following data on overhead from its two service departments,the Information Systems Department and the Facilities Department.
Information systems is allocated on the basis of hours of computer usage; facilities are allocated on the basis of floor space.
Required:
Allocate the service department costs to the user departments using the direct method.(Round to the nearest dollar and provide total user department costs)

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Definitions:

pH

A measurement system designed to determine the level of acidity or alkalinity in water-based solutions, marked on a continuum from 0 to 14.

K

In the context of chemistry, often represents the equilibrium constant, symbolizing the ratio of product concentrations to reactant concentrations at equilibrium.

pH

A numeric scale used to specify the acidity or basicity (alkalinity) of an aqueous solution, with 7 being neutral, values below 7 acidic, and above 7 basic.

K

The symbol for potassium, a chemical element of atomic number 19, essential for living organisms.