Question
1 & App. 11A Saved Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below:
1 & App. 11A Saved Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Operating Departments Costs Number of employees Square metres of space occupied Machine-hours Service Departments Equipment Administrative $84,000 80 300 Janitorial $67,800 60 1,200 Maintenance Prep. Finishing Total $36,000 240 $256,100 $498,600 600 300) 1,000 2,000 7,000 $942,500 1,280 11,500 10,000 30,000 40,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees). Janitorial (space occupied), and Equipment Maintenance (machine-hours). Help
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