Nokia Inc. has two user departments Wireless Communications & Digital Communications. The two support departments are Technical Support (TS) & Research & Development (R&D). The costs incurred in each of these departments are as follows:Wireless Commu
Nokia Inc. has two user departments Wireless Communications & Digital Communications. The two support departments are Technical Support (TS) & Research & Development (R&D). The costs incurred in each of these departments are as follows:Wireless Communications $110000Digital Communications $60000TS $80000R&D $90000The actual level of support is as follows:Supplied by Used byTS R&D Wireless DigitalTS 20% 50% 30%R&D 30% 25% 45%Determine the cost allocated to:1. Wireless Communications using the direct method2. Digital Communications using the direct method3. Wireless Communications using the step-down method (allocating TS first)4. Wireless Communications using the step-down method (allocating R&D first)5. Wireless Communications using the reciprocal method6. Digital Communications using the reciprocal method