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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 tweets Costs Number
Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Service Departments Operating tweets Costs Number of employees Square metres of spece occupied Machine-hours Equipment Administrative Janitorial Maintenance $104,000 $67,800 $36,000 80 60 240 300 1,200 1,000 $256.100 600 2,000 50.000 Tinishing $498,600 300 7.000 75.000 $962,500 1.280 11,500 125.000 2:53 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 0 $ $ 0 0 $ $ $ Total costs after allocation
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