ABC Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing)....

  

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ABC Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is currently used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours; the causal factor for the maintenance costs is repair hours. Assume the following information My assumption on the correct format of the table: Direct cost Kilowatt Repair Power 100,000 500 Maintenance 150,000 10,000 Assembly 75,000 90,000 2,500 Finishing 50,000 100,000 2,000 ABC decides to switch to Step-down method and cost allocation sequence is based on a ranking of percentage of services provided to other support departments, which of the following best describes this procedure? A. Maintenance department's costs are allocated to Assembly and Finishing, then Power's costs are allocated to Assembly and Finishing. B. Power department's costs are allocated to Assembly and Finishing, then Maintenance's costs are allocated to Assembly and Finishing. C. Maintenance department's costs are allocated to Power, Assembly and Finishing, then Power's costs are allocated to Assembly and Finishing. D. Power department's costs are allocated first to Maintenance, Assembly and Finishing, then Maintenance's costs are allocated to Assembly and Finishing. ABC Company has two support departments (Power and Maintenance) and two producing departments (Assembly and Finishing). The direct allocation method is currently used to assign support department costs to the producing departments. The causal factor for the power costs is kilowatt hours; the causal factor for the maintenance costs is repair hours. Assume the following information My assumption on the correct format of the table: Direct cost Kilowatt Repair Power 100,000 500 Maintenance 150,000 10,000 Assembly 75,000 90,000 2,500 Finishing 50,000 100,000 2,000 ABC decides to switch to Step-down method and cost allocation sequence is based on a ranking of percentage of services provided to other support departments, which of the following best describes this procedure? A. Maintenance department's costs are allocated to Assembly and Finishing, then Power's costs are allocated to Assembly and Finishing. B. Power department's costs are allocated to Assembly and Finishing, then Maintenance's costs are allocated to Assembly and Finishing. C. Maintenance department's costs are allocated to Power, Assembly and Finishing, then Power's costs are allocated to Assembly and Finishing. D. Power department's costs are allocated first to Maintenance, Assembly and Finishing, then Maintenance's costs are allocated to Assembly and Finishing.

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