Data Master Is a Computer Software Consulting Company

question 122

Essay

Data Master is a computer software consulting company.Its three major functional areas are computer programming,information systems consulting,and software training.Cynthia Moore,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,Moore is considering three different methods of allocating overhead costs-the direct method,the step method,and the reciprocal method.Moore 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:

Immediate Aftermath

The period immediately following an event, characterized by reactions, consequences, and initial responses to what has occurred.

League of Nations

An international organization founded after World War I to promote peace and cooperation among countries, a precursor to the United Nations.

Treaty of Versailles

The peace treaty that ended World War I, signed in 1919, which imposed heavy reparations and territorial losses on Germany, leading to political and economic instability.

Nonalignment

A principle of foreign policy which asserts that a state should not align itself with military or political blocs and instead maintain independence in international affairs.