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2) Aardvark Industries has two production departments, Assembly and Finishing, and three Service Departments, Personnel, Maintenance, and Cafeteria. Data relevant to Aardvark are: Department Direct
2) Aardvark Industries has two production departments, Assembly and Finishing, and three Service Departments, Personnel, Maintenance, and Cafeteria. Data relevant to Aardvark are: Department Direct Personnel Maintenance Cafeteria Assembly Finishing Cost $500,000 Personnel Maintenance 420,000 Cafeteria 200,000 Assembly 380,000 Finishing 150,000 Direct Cost Cafeteria Personnel Maintenance Total 0.20 0.10 0.20 Cafeteria Personnel 200,000 500,000 420000 Maintenance 0.70 Required: Allocate the service department costs of Aardvark Industries using the step method of cost allocation (Cafeteria first, then Personnel, then Maintenance). Assembly 380 000 0.80 0.30 0.20 0.20 0.30 Finishing 150,000
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