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15. (10 points) Houa Manufacturing has two support departments: Human Resources and Facilities. Houa has two production departments: Fabrication and Assembly. Actual data for each
15. (10 points) Houa Manufacturing has two support departments: Human Resources and Facilities. Houa has two production departments: Fabrication and Assembly. Actual data for each department is as follows: Human Resources costs equal $360,000 and are allocated based on the number (A) of Employees. Facilities costs equal $475,000 and are allocated based on Square (Sq.) Feet. a. Calculate the percentage of support department costs rendered to each other (HR \& Facilities). Rank the department to be allocated first when using the step-down method based on support services rendered. b. Independent of your answer above and using the step-down method, calculate the allocation of support department costs to the production departments Fabrication and Assembly respectively. allocating the Facilities department first. c. Why is cost allocation to products within government agencies an important ethical issue
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