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50 45 30 35 Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The
50 45 30 35 Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $432,000 of costs, administration incurred $669,600, and maintenance incurred $204,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% Administration 10% 15 Maintenance 15 10 Assembly 40 Finishing 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments? To Administration $ 0 To Maintenance 0 To Assembly To Finishing 0 Total $ 0 2. What amount of cost should be assigned from administration to each of the other departments? To Administration $ 0 To Maintenance 0 To Assembly 0 To Finishing 0 Total $ 0 3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration $ 0 To Maintenance $ 0 To Assembly 0 To Finishing Total $ 0 0
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