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ABC Manufacturing has two service departments, Maintenance and Administration, and two production departments, Assembly and Finishing. The following costs are incurred in each department: Maintenance:

  1. ABC Manufacturing has two service departments, Maintenance and Administration, and two production departments, Assembly and Finishing. The following costs are incurred in each department:


    • Maintenance: $50,000
    • Administration: $30,000
    • Assembly: $100,000
    • Finishing: $70,000 Allocate the service department costs to the production departments using the step-down method.

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