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Administration 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
Administration 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 $360,000 of costs, administration incurred $558,000, and maintenance incurred $170,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% 10% 15 Maintenance 15 10 Assembly 40 50 45 Finishing 35 30 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 Administrations 0 To Maintenance 0 To Assembly 0 To Finishing 0 $ 0 Total 2. What amount of cost should be assigned from administration to each of the other departments? To Administration $ $ 0 To Maintenance 0 To Assembly o To Finishing 0 Total $ 0 3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration 5 0 $ To Maintenance 0 o To Assembly 0 To Finishing $ 0 Total b. What total support department cost was assigned in October? To Assembly $ 0 0 To Finishing 0 O
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