22. Question Content Area Support Department Allocations The centralized computer technology department of Hardy Company

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22.
Question Content Area
Support Department Allocations
The centralized computer technology department of Hardy Companyhas expenses of $165,000. The department has provided a total of5,000 hours of service for the period. The Retail Division has used3,900 hours of computer technology service during the period, andthe Commercial Division has used 1,100 hours of computer technologyservice.
How much should each division be allocated for computertechnology department services? Do not round interimcalculations.
24.
Question Content Area
Lease or Sell
Casper Company owns equipment with a cost of $368,000 andaccumulated depreciation of $53,200 that can be sold for $277,200,less a 5% sales commission. Alternatively, Casper Company can leasethe equipment for three years for a total of $284,500, at the endof which there is no residual value. In addition, the repair,insurance, and property tax expense that would be incurred byCasper Company on the equipment would total $14,900 over the threeyear lease.
Question Content Area
a. Prepare a differentialanalysis on August 7 as to whether Casper Company should lease(Alternative 1) or sell (Alternative 2) the equipment. If required,use a minus sign to indicate a loss.
Question Content Area
b. Should Casper Company lease(Alternative 1) or sell (Alternative 2) the equipment?
Lease the equipmentSell the equipment