Data Master Is a Computer Software Consulting Company

question 89

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 step method.Allocate Information Systems first and round to the nearest dollar.Provide total user department costs.

---

Definitions:

Official Possession

The state of legally holding or owning something recognized by government or authoritative bodies.

Anti-insurgent Policies

Strategies and actions taken by a government to prevent, counteract, or quell activities considered rebellious or against the state's control, often in a military or strategic context.

Valeriano Weyler

A Spanish general who served as the Governor General of Cuba and was known for his repressive tactics against Cuban insurgents during the Cuban War of Independence.

Springfield

A city name in the United States, notable for historical events depending on the specific state.