Consider the data in Exercise 16.21.

Data From Exercise 16.21

Required:
Allocate the support department costs to the production departments using the step down method. Allocate the costs for maintenance before allocating the costs for information systems. What are the final balances (total costs) in the Shampoo and Soap cost pools?

Information MaintenanceSystems Initial cost in pool$800,000 Maintenance Information Systems Shampoo $2,000,000 40% 50% Soap $1,5000,000 40% 30% $500,000 20% 20%