C D -partments Costs Allocation - Version A ( 12 marks) E F 3 4 MF Ltd. has 2 service departments (Accounting and Maintenance) and 2 operating departments (Lawnmower and Weedwac MF's management has decided to allocate Accounting costs on the basis of the number of employees, 5 and Maintenance costs on the basis of the service hours used. Below is data concerning MF's current operations: 6 Accounting Maintenance Lawnmower Weedwacker Overhead costs $240,000 $310,000 $787,500 $612,500 # Employees 5 30 45 Service hours 20 480 500 Required: 1. Allocate the service departments costs to the two operating departments using step-down method. The department with higher overhead cost would be ranked first. Show your detailed work. ( 6 marks)