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Nokia has two user departments, Wireless Communications & Digital Communications. The two support depts are TS and R&D. The cost incurred in each is: Wireless Comm $110,000, Digital Comm $60,000, TS $80,000 and R& D &90,000. The actual level of support is: Supplied by TS- Used by R & D 20%, Wireless 50%, Digital 30%. Supplied by R & D- Used by TS 30%, Wireless 25%, Digital 45%. Determine the cost allocated to: Wireless Comm using the direct method Digital Comm using the direct method Wireless Comm using the step down method (allocating TS first) Wireless Comm using the step down method (allocating R & D first) Wireless Comm using the reciprocal method Digital Comm using the reciprocal method

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9984543

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