question archive The centralized computer technology department of Kearney Company has expenses of $170,000
The centralized computer technology department of Kearney Company has expenses of $170,000
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The centralized computer technology department of Kearney Company has expenses of $170,000. The department has provided a total of 4,250 hours of service for the period. The Retail Division has used 2,250 hours of computer technology service during the period, and the Commercial Division has used 2,000 hours of computer technology service. How much should each division be charged for computer technology department services?
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Retail Division Service Charge for Computer Technology Department:
$90,000 = 2,250 billed hours × ($170,000/4,250 hours billed)
Commercial Division Service Charge for Computer Technology Department:
$80,000 = 2,000 billed hours × ($170,000/4,250 hours billed)
