Question: A large supermarket chain has a centralized bakery facility that makes cupcakes for three service centers and two stores (revenue centers). The $40,000 cost of

A large supermarket chain has a centralized bakery facility that makes cupcakes for three service centers and two stores (revenue centers). The $40,000 cost of preparing the cupcakes is assigned on the basis of cupcake pans used. Based on the following data, assign the cost of the cupcakes using the step method:

Center A, 50,000 pans; Center B, 20,000 pans; Center C, 30,000 pans; Store D, 60,000 pans; and Store E, 40,000 pans. Assume an allocation order of A, B, and C.

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