Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $576,000 of costs, administration incurred $892,800, and maintenance incurred $272,000. Proportions of services provided to other departments for October follow.

	Human Resources	Administration	Maintenance
Human resources		10%	5%
Administration	10%		15
Maintenance	15	10
Assembly	40	50	45
Finishing	35	30	35

a. Assume that the departments are listed in a benefits-provided ranking.

Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar.

1. What amount of cost should be assigned from human resources to each of the other departments?

To Administration
To Maintenance
To Assembly
To Finishing
Total

2. What amount of cost should be assigned from administration to each of the other departments?

To Administration
To Maintenance
To Assembly
To Finishing
Total

3. What amount of cost should be assigned from maintenance to each of the other departments?

To Administration
To Maintenance
To Assembly
To Finishing
Total

b. What total support department cost was assigned in October?

To Assembly
To Finishing