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

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

Center A, 200 containers; Center B, 400 containers; Center C, 150 containers; Store D, 120 containers; and Store E, 130 containers. Assume an allocation order of A, B, and C.

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