Description Suppose you are the manager of a widget-production company. The company’s two support departments, Purchasing and Human Resources, are currently allocated amongst its three manufacturing departments: Laminating, Fabricating, and Assembling. Currently, the support department’s costs are divided equally among the three manufacturing departments. The company has conducted an analysis using the number of employees in the manufacturing departments as the activity driver. The results of the analysis indicate Fabricating would receive 50% of the total costs of Purchasing and Human Resources, Laminating would receive 30%, and Assembling would receive 20%. As a manager, would you suggest the firm adopt the new activity-driven allocations or retain the current allocation method? Choose a method of allocation and provide your rationale. Identify at least two additional cost drivers that could be used to allocate the costs of the two support departments and explain the rationale you used to select the additional cost drivers. discuss this topic 100 word Thanks User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

Suppose you are the manager of a widget-production company. The
company’s two support departments, Purchasing and Human Resources, are
currently allocated amongst its three manufacturing departments:
Laminating, Fabricating, and Assembling. Currently, the support
department’s costs are divided equally among the three manufacturing
departments. The company has conducted an analysis using the number of
employees in the manufacturing departments as the activity driver. The
results of the analysis indicate Fabricating would receive 50% of the
total costs of Purchasing and Human Resources, Laminating would receive
30%, and Assembling would receive 20%. As a manager, would you suggest
the firm adopt the new activity-driven allocations or retain the current
allocation method? Choose a method of allocation and provide your
rationale. Identify at least two additional cost drivers that could be
used to allocate the costs of the two support departments and explain
the rationale you used to select the additional cost drivers. discuss this topic 100 word Thanks

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.