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Nokia inc has two user departments wireless communications

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Reference no: EM13391771

Nokia Inc. has two user departments, Wireless Communications & Digital Communications. The two support departments are Technical Support (TS) & Research & Development (R&D). The costs incurred in each of these departments are as follows:

Wireless Communications $110,000

Digital Communications $60,000

TS $80,000

R&D $90,000

The actual level of support is as follows:

Supplied by Used by

TS R&D Wireless Digital

TS 20% 50% 30%

R&D 30% 25% 45%

Determine the cost allocated to:

1. Wireless Communications using the direct method

2. Digital Communications using the direct method

3. Wireless Communications using the step-down method (allocating TS first)

4. Wireless Communications using the step-down method (allocating R&D first)

5. Wireless Communications using the reciprocal method

6. Digital Communications using the reciprocal method

Reference no: EM13391771

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