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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:
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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