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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 Departs Costs Number
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below. Service Departments Operating Departs Costs Number of employees Square metres of soce occupied Machin-hours Equipment Addensteative Janitoriaintenance $8 557. Be 336,000 66 240 1,200 1, Finishing 5498, Prep 5256, 100 50 2,800 13,00 Total 545, 1,280 11,500 60,000 7.00 42,00 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, alocate the service department costs to the operating departments. Negative amounts should be Indicated by minus sign Service Departments Operating Departments Administrative Janitorit Prep Finishing 30.000 T300330.000 250.10031403.6003 Total 94 500 Department before con Allons am non Vande Talcotection 5 71005 30.000 258, 100 400000 500
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