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1 Booster Ltd manufactures high-fidelity speakers. The company has two operating departments (Machinery and Assembly) and two support departments (Administrative/Human Resources and Maintenance). The usage
1 Booster Ltd manufactures high-fidelity speakers. The company has two operating departments (Machinery and Assembly) and two support departments (Administrative/Human Resources and Maintenance). The usage of these two support departments' output for 2020 was as follows: Support departments Operating departments Quality Control Maintenance Admin/HR Assembly Budgeted manufacturing overhead costs before an inter-department cost allocation 550,000 475,000 600,000 1,500,000 Support work supplied by: Admin/HR Maintenance Required: 0% 35% 45% 20% 25% 0% 50% 25% Answer ALL parts. a) Use the direct method to allocate the budgeted costs of the support departments to the operating departments. (2 Marks) AND b) Use the step-down method to allocate budgeted costs of the support departments to the operating departments. (6 Marks) AND
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