Question: 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

 Step method Leander Mfg. has three support departments (human resources, administration,

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 $360,000 of costs, administration incurred $558,000, and maintenance incurred $170,000. 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 $ OX To Maintenance 69,300 X To Assembly 184,800 X To Finishing OX Total 415,800 x 2. What amount of cost should be assigned from administration to each of the other departments? To Administration $ 0 0 To Maintenance 55,800 x To Assembly OX To Finishing OX Total $ OX 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 0 0 % 0 % OX $ b. What total support department cost was assigned in October? OX To Assembly $ To Finishings 0 %

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