Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. The personnel department has total overhead costs of $74,000; the Cafeteria department has total overhead costs of $180,000 and the Maintenance department has total overhead costs of $103,000

	Support departments			Operating departments
	Personnel	Cafeteria	Maintenance	Machining	Assembly
Personnel		26%	34%	19%	21%
Cafeteria	22%		33%	17%	28%
Maintenance	25%	21%		26%	28%

Required:

Applying the step-down method, compute the total overheads from support departments allocated to Assembly department if the allocation order is personnel, cafeteria and maintenance. Workings on cost allocation steps should be provided for partial marks

Answer rating: 100% (QA)

Allocation Ratios Personnel Cafeteria Maintenance Machining Assembly Personn... View the full answer