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:

Personal Characteristics

Traits or qualities that describe an individual's distinct personality or physical attributes.

Career Choice

The process of deciding on a specific career path or profession based on personal interests, values, and abilities.

Transferable Skill

A skill that is useful in a variety of jobs and industries, not just the one in which it was originally acquired.

Holland Personality

A theory that categorizes people based on six personality types—Realistic, Investigative, Artistic, Social, Enterprising, and Conventional—to match them with suitable careers.