ACC502: Operation Management Accounting

Quality Control and Material Handling Department. The company has two departments that are directly.' engaged in production: The Bending Department and the Welding Department. The usage of the three-support department output is as follows: Service Provider artments and reenta e of their services used the user departments Equipment Maintenance Department - Bending department and Welding department use 30% and 70% of the services. respectively Quality Control Department - Equipment Maintenance Department 5% - Material Handling Department 20% - Bending Department 25% - Welding Department 50% Material Handling Department - Quality Control Department 5% - Bending Department 35% - Welding Department 60% The budgeted costs in the respective departments were as follows: Support departments: Equipment maintenance S 200 000 Qualin control 120 000 Material handling 300 000 5 620 000 Production departments: Bending $ 600 000 Welding 100 000 700 000 Total overhead costs 5 1 320 000 Required: Use the Step-down method to allocate the budgeted costs of the Equipment Maintenance. Quality Control and Material Handling to the Bending and Welding Departments. QML allocates the costs of the Quality Control Department rst. (Note: Round off your answers to the nearest whole number)