For the month of October, the Accounting and IT departments incurred costs of $180,000 and $260,000, respectively. The company uses the step-down method to allocate support costs with the accounting costs being allocated first followed by the IT costs. Costs are being consumed in the following manner: Accounting Costs IT Costs IT 20% Accounting 20% Mixing 35% Mixing 30% Fabrication 25% Fabrication 20% Final Cost Objects 20% Final Cost Objects 30% Using the step-down method, how much of the total support activity costs (Accounting and IT) will be allocated to the Fabrication department?

Answer rating: 100% (QA)

Solution The stepdown method involves allocating the support costs to the departments ... View the full answer