Data Master Is a Computer Software Consulting Company

question 148

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 reciprocal method.Round to the nearest dollar.

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Definitions:

Phenotypic Trait

An observable and measurable characteristic of an organism, which can result from its genetic makeup and environmental influences.

DNA

DNA, or deoxyribonucleic acid, is a molecule that contains the instructions an organism needs to develop, live, and reproduce.

Population Differences

Variations in genetic makeup, traits, or behaviors among different groups within a species, often due to environmental factors or genetic drift.

Glyphosate

A broad-spectrum systemic herbicide and crop desiccant, known for its use in agriculture to kill weeds, especially those resistant to other herbicides.