into the Question 3 (25 marks) (a) Winky Lsd has three separate production departments-cutting, sewing, and packaging and two service The following tables show the planned operating costs and expected levels of activity for the year 2000 Production Departments Service Departments Cutting Sewing Packaging Maintenance -000 000 000 Durimental activity Drect laborar hours 100 2.000 1,000 NERO Machine hours 870 130 200 200 125 Depurimental whats (5): Variable owerheads 7.000 12.000 21,500 12,600 4.0HD Fixed wwerhede 7,845 7.900 10,00 2.000 400 200 120 80 Lise of service departments Canteestimated usage in direct labour hours Maintenance estimated usage in machine hours Required: GO 30 30 5 0 Allocate the service departments costs to the production departments using the step down method, by which the service department with the largest overhead amount gets the apportions first (6 marks) (ii) Discuss any three factors to be considered when choosing the cost allocation approach for allocating service department charges to production departmnls within an entity (3 marks) into the Question 3 (25 marks) (a) Winky Lsd has three separate production departments-cutting, sewing, and packaging and two service The following tables show the planned operating costs and expected levels of activity for the year 2000 Production Departments Service Departments Cutting Sewing Packaging Maintenance -000 000 000 Durimental activity Drect laborar hours 100 2.000 1,000 NERO Machine hours 870 130 200 200 125 Depurimental whats (5): Variable owerheads 7.000 12.000 21,500 12,600 4.0HD Fixed wwerhede 7,845 7.900 10,00 2.000 400 200 120 80 Lise of service departments Canteestimated usage in direct labour hours Maintenance estimated usage in machine hours Required: GO 30 30 5 0 Allocate the service departments costs to the production departments using the step down method, by which the service department with the largest overhead amount gets the apportions first (6 marks) (ii) Discuss any three factors to be considered when choosing the cost allocation approach for allocating service department charges to production departmnls within an entity