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WQ7 (12 points) Walter White, Inc., a chemical supply manufa…

WQ7 (12 points) Walter White, Inc., a chemical supply manufacturer, has two operating departments- corporate sales and consumer sales- and two support departments- legal services and quality assurance. Walter white uses number of employees to allocate legal services costs and processing time to allocate quality assurance costs.   Support Departments Operating Departments   Legal Services Quality Assurance Consumer Sales Corporate Sales Budgeted costs incurred before any interdepartmental cost allocations $100,000 $200,000     Support work supplied by legal services department         Budgeted number employees – 100 220 180 Support work supplied by quality assurance department         Budgeted processing time (in minutes) 625 – 300 1,575   Allocate the support departments’ costs to the operating departments using the following methods. NOTE: if needed, round to the nearest cent when solving. 1. Direct method. (1 point) The total support department costs allocated to consumer sales is [a] (1 point) The total support department costs allocated to corporate sales is [b] 2. Step-down method (allocate Quality Assurance first). (2 points) The total support department costs allocated to consumer sales is [c] (2 points) The total support department costs allocated to corporate sales is [d] 3. Reciprocal method. (3 points) The total support department costs allocated to consumer sales is [e] (3 points) The total support department costs allocated to corporate sales is [f]    

WQ3 Part 2 (4 points) Suppose Tim Bergling can increase the…

WQ3 Part 2 (4 points) Suppose Tim Bergling can increase the annual capacity of his regular machine by 12,500 hours at a cost of $1,245,000. How much would income increase or decrease under the new product mix if Tim Bergling were to increase the annual capacity of his regular machine?