1.Boomtown is preparing a cost analysis of the three departments: Parks. Fire, and Water. To comply with accuracy standards in allocating indirect costs, Boomtown will employ the step-down method of cost allocation. There are two indirect cost groups that are allocated: city administration and facilities. Costs for facilities are allocated first, and then costs for city administration are allocated. Using the data in the table below (also included in a self-checking spreadsheet), prepare the cost allocation using direct cost as the base a determine the full cost of the departments.

Indirect Cost Group Direct Cost

Facilities $5,212,544

City Admin $1,475,241

Departments

Parks $15,025,842

Fire $45,218,534

Water $35,248,612