Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October 2010, human resources incurred $360,000 of costs, administration incurred $558,000, and maintenance incurred $170,000.
Proportions of services provided to other departments for October 2010 follow.

a. Assuming that the departments are listed in a benefits-provided ranking, what amount of cost should be assigned from human resources to each of the other departments? From administration? From maintenance?
b. What total support department cost was assigned to assembly in October? To finishing?
c. Explain why the cost allocation is affected by the order in which costs areassigned.

Human Resources Administration Maintenance 596 15 Human resources Administration Maintenance Assembly Finishing 10% 1096 15 40 35 10 50 30 45 35