Using the step down method, allocate support department costs Allocate the costs of the support departments in the order given in this problem (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar Use parentheses or a minus sign when decreasing departments by allocating costs ) Support Departments Operating Departments General Cafeteria Bldg and Plant Operating Grounds Personnel Admin Loss Storeroom Machining Assembly Costs incurred 12000 2300 19440 2600 17570 36000 48900 Allocation of costs Building and grounds 12000 Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating departments Support departments Building and grounds $12,000 Personnel 2,300 General plant administration 19,440 Cafeteria Operating loss 2,600 Storeroom 17,570 $53,910 Operating departments Machining $36,000 Assembly 48,900 84,900 Total for support and operating departments $138,810 Department Direct Manufacturing Labor Hours Number of Employees Square Feet of Floor Space Occupied Indirect Manufacturing Labor Hours Number of Requisitions Building and grounds 0 0 0 0 0 Personnel 0 0 2,500 0 0 General plant administration 0 40 4,000 0 0 Cafeteria operating loss 0 10 5,000 1,000 0 Storeroom 0 5 6,000 2,000 0 Machining 4,000 55 27,500 5,000 6,000 Assembly 12,000 140 105,000 14,400 4,000 Total 16,000 250 150,000 22,400 10,000 Basis used is number of employees

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Question: Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation

Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.)

		Support Departments					Operating Departments
				General	Cafeteria
		Bldg and		Plant	Operating
		Grounds	Personnel	Admin.	Loss	Storeroom	Machining	Assembly
Costs incurred		12000	2300	19440	2600	17570	36000	48900
Allocation of costs:
	Building and grounds	12000
	Personnel
	General plant administration
	Cafeteria
	Storeroom
Total budgeted costs of operating departments

Support departments:

Building and grounds

$12,000

Personnel

2,300

General plant administration

19,440

Cafeteria: Operating loss

2,600

Storeroom

17,570

$53,910

Operating departments:

Machining

$36,000

Assembly

48,900

84,900

Total for support and operating departments

$138,810

Department

Direct Manufacturing Labor-Hours

Number of Employees

Square Feet of Floor Space Occupied

Indirect Manufacturing Labor-Hours

Number of Requisitions

Building and grounds

Personnel

2,500

General plant administration

4,000

Cafeteria: operating loss

5,000

1,000

Storeroom

6,000

2,000

Machining

4,000

27,500

5,000

6,000

Assembly

12,000

140

105,000

14,400

4,000

Total

16,000

250

150,000

22,400

10,000

Basis used is number of employees

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