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3. Bixler Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are
3. Bixler Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are to be allo- cated first, followed by the costs of B, and then those of C. The distribution of services is: Service Support Operating Supplied By Depts Depts. A B C Y A 10%% 50% 20% 20% B 40 % 15% 30% 15% C 25% 25% 20% 30% The percentage of B's costs that should be allocated to Y is: a. 15%. b. 331/3 %. C. 25%. d. none of the above. . 4. Using the data in question 3, the per- centage of C's costs that should be allocated to B under the step-down method is: a. 0%. b. 20%. c. 3313%. d. none of the above
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