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Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for next year: Support Departments Maintenance $360,000 Operating Departments Systems $
Adam Corporation manufactures computer tables and has the following budgeted indirect manufacturing cost information for next year: Support Departments Maintenance $360,000 Operating Departments Systems $ 95,000 TOTAL Machining $ 200,000 Fabrication $ 300,000 $ 955,000 Budgeted Overhead Support Work Furnished From Maintenance From Systems 10% 50% 45% 40% 50% 100% 100% 5% If Adam uses the step-down method, beginning with the Maintenance Department, to allocate support department costs to production departments, the total overhead (rounded to the nearest dollar) for the Machining Department to allocate to its products would be: $442,053. O $425,000. O $380,000. $422,750
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