Question: FedEx Corporation allocates overhead costs using the step-down allocation method. In August 2036, the company allocates $50,000,000 in overhead costs across departments: Administration: $20,000,000 Distribution:

FedEx Corporation allocates overhead costs using the step-down allocation method. In August 2036, the company allocates $50,000,000 in overhead costs across departments:

Administration: $20,000,000
Distribution: $30,000,000

Required:

Allocate costs to each department using the step-down method.
Determine the impact on departmental costs.

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