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Arbon Company has three service departments and two operating departments. Selected data concerning the ve departments are presented below: Service Departments Operating Departments Equipment Administrative
Arbon Company has three service departments and two operating departments. Selected data concerning the ve departments are presented below: Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep Finishing Total Costs $85,000 $67,800 $36,000 $256,100 $498,600 $943,500 Number of employees 80 60 240 600 300 1, 230 Square metres of space occupied 300 1,200 1,000 2,000 7,000 11,500 Machine-hours 12,000 43,000 60,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied). and Equipment Maintenance (machine-hours). Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) Departmental costs before allocations _____ ____ ___ ___ _____
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