Fox Company Has Two Support Departments (S1 and S2) and Two

question 34

Essay

Fox Company has two support departments (S1 and S2) and two producing departments (P1 and P2). Estimated direct costs and percentages of services used by these departments are as follows: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text {Used by Department}$
$\begin{array} { c c c c c } \text { Support Dept. } & \underline { \mathrm { S } 1 } & \underline { \mathrm { S } 2 } & \underline { \mathrm { P } 1 } & \underline { \mathrm { P } 2 } \\ \mathrm {~S} 1 & - & 10 \% & 40 \% & 50 \% \\ \mathrm {~S} 2 & 20 \% & - & 50 \% & 30 \% \\ \text { Direct costs } & £ 4,500 & £ 8,000 & £ 10,000 & £ 15,000 \end{array}$

a.Prepare a schedule allocating the support department costs to the producing departments using the direct allocation method.
b.Prepare a schedule allocating the support department costs to the producing departments using the sequential allocation method.

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Definitions:

Delusion of Grandeur

A Delusion of Grandeur is a false belief in one's own superiority, greatness, or power, often a symptom of psychiatric disorders like bipolar disorder or schizophrenia.

DSM-IV-TR

The Diagnostic and Statistical Manual of Mental Disorders, Fourth Edition, Text Revision; a manual for the assessment and diagnosis of mental disorders.

Axis I

A classification in earlier versions of the Diagnostic and Statistical Manual of Mental Disorders that describes clinical disorders, including mood disorders, anxiety disorders, and schizophrenia.

Axis II

A classification previously used in the DSM (Diagnostic and Statistical Manual of Mental Disorders) for diagnosing personality disorders and intellectual disabilities.