Question: Solve the allocation question with three methods. 1. direct method, 2. step down method. 3. reciprocal method. Support Departments Plant Information Maintenance Systems Operating Departments

 Solve the allocation question with three methods. 1. direct method, 2.

Solve the allocation question with three methods. 1. direct method, 2. step down method. 3. reciprocal method.

Support Departments Plant Information Maintenance Systems Operating Departments Machining Assembly Total $600,000 $116,000 $400,000 $200,000 $1,316,000 Budgeted manufacturing overhead costs before any interdepartment cost allocations Support work furnished: By Plant Maintenance Budgeted labor-hours Percentage By Information Systems Budgeted computer-hours Percentage 1,600 20% 2,400 30% 4,000 50% 8,000 100% 200 10% 1,600 80X 200 10% 2,000 100%

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