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4. Wabasha Co. has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Depts.
4. Wabasha Co. has two service departments (A and B) and two producing departments (X and Y). Data provided are as follows: Service Depts. Operating Depts. A B X Y Direct costs $250 $400 Services performed by Dept. A Services performed by Dept. B. 40% 40% 20% 20% 70% 10% Wabasha uses the step-down method to allocate service department costs. Department A costs are allocated first. The service department cost allocated to Department Y is a. $90. b. $97.50. c. $112.50. d. $130.
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