Direct, Step-Down, and Reciprocal Methods, Assigning Costs to Departments Cost information for Red Oak Town Library is as follows:

	Support Department	Support Department	Operating Department	Operating Department
Direct Costs	Janitorial	Admin	Books	Other Media	Total
Salaries	$20,500	$39,200	$67,500	$51,800	$179,000
Supplies	$4,500	$5,300	$16,200	$24,300	$50,300
Allocation Base
Square Meters	50	48	114	38	250
Employees	1	1	2	1	5

REQUIRED 

In addition to directly traceable costs, the library incurred $22,500 for a building lease.

A). Allocate to departments any costs that have not been traced and then calculate total costs assigned to each department.

B). Allocate the support department costs to the operating departments using the direct method.

C). Allocate the support department costs to the operating departments using the step-down method. Allocate first the costs for the support department that has the largest direct costs.

Answer rating: 100% (QA)

A Allocate to departments any costs that have not been traced and then calculate total costs assigned to each department Direct Costs The direct costs that have been incurred by the Red Oak Town Libra... View the full answer