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Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Costs Number
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating Departments Costs Number of employees Square metres of space occupied Machine-hours Equipment Administrative Janitorial Maintenance $103,000 $67,800 $36,000 80 60 240 300 1,200 1,000 Prep $256,100 600 2,000 48,000 Finishing $498,689 360 7,888 72, eee Total $961,500 1,280 11,5ee 120, eee 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.) Service Departments Administrative Janitorial Maintenance Operating Departments Prep Finishing Total Departmental costs before allocations Allocations Administrative Janitorial Maintenance Total costs after allocation
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