Question: Starbucks uses the step-down method for cost allocation. The following data is available: Service Department Costs Before Allocation ($) Allocation Basis Total Allocation Basis IT

Starbucks uses the step-down method for cost allocation. The following data is available:

Service Department

Costs Before Allocation ($)

Allocation Basis

Total Allocation Basis

IT Support

$400,000

Number of computers

400

Maintenance

$300,000

Square footage

100,000

The IT Support department has 150 computers, and the Maintenance department occupies 30,000 square feet. Allocate the costs to these departments.

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