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(solution) Enterprise Systems Instructions: Answer the following question


Hi Again, Need help to get the solutions asked for in the attached instructions. 

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Enterprise Systems

 

Instructions: Answer the following question using class PPTs.

 

Question 1 (5 pts):

 

Suppose Fitter Snacker pays $20,000 for rent every month.

 

a. Do a cost allocation for the different departments of Fitter Snacker using information in

 

Figure 1. Show your calculation.

 

b. Which department pay the most for rent, and which department pay the least for rent?

 

Where does the difference come from?

 

c. What type of cost allocation did you do for this question?

 

Cost center

 

A010

 

A020

 

A030

 

A040

 

A050

 

A060 Department Square footage Finance

 

H/R

 

Sales

 

Marketing

 

Purchasing

 

Administration 480

 

520

 

200

 

590

 

310

 

400 Figure 1: Cost Centers for Fitter Snacker Question 2 (5 pts):

 

Suppose Fitter Snacker pays $12,000 for utilities every month. They have 6 different cost centers

 

(Figure 1).

 

a. If Fitter Snacker allocates the cost equally to each cost center, how much does each

 

department pay for utilities each month?

 

b. If Fitter Snacker allocates 20% of the cost to the Administration department and equally

 

allocates the rest of the cost to other cost centers, how much does each department pay for

 

utilities each month?

 

c. What type of cost allocation did you do for this question?

 


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Sep 13, 2020

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