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This Question have two parts :PART 1 :American Printing Company’s information technology department administers the company’s material requirements planning and general ledger systems. It also provides support to the computer-based shop floor reporting and payroll systems, as well as personnel computing services for each departments administration. Recently, American Printings Controller, Sally Sound, has been considering outsourcing IT operations to Cloud computing providers to minimize support department expenses. She has been reviewing potential contracts with Cloud suppliers, and interviewed the managers of departments that receive support from the current IT department. Sally Sound determines that the cost savings are approximately $250,000 for the company. Its revenues are presently $50 million. For this discussion:
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- What are the qualitative considerations for the elimination of support departments when strategically minimizing costs?What are the quantitative considerations that the Controller must include in the calculation?What might the inputs in the decision be if the space and labor costs can be removed in the short run of one year?
Mike’s Services CorporationMike’s Services Corporation provides flavoring agents to the food industry. It has two Support departments — Engineering and Materials Management — and two Operating departments–Machining and Assembly.Requirements:
- Compute the single-rate method.Compute the dual-rate method.Compute the supply of capacity method.
Follow the instructions on the Data tab of the worksheet linked in Module 2. Show all calculations within the cells of the Excel spreadsheet. This means that you must use formulas and links so that your thought process can be examined. You must also include a detailed explanation of each journal entry that you make or do not make on each date to convey your thought process. There should be no hard coding of solutions.Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.Submit your downloaded and completed Excel file (with your name added to the file name)
