Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below: Costs Number of employees. Square metres of space occupied Machine-hours Service Departments Administrative $102,000 80 300 Equipment Janitorial Maintenance $67,800 $36,000 60 240 1,200 1,000 Operating Departments Prep $256,100 600 2,000 46,000 Finishing Total $498,600 $960,500 300 7,000 69,000 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). 1,280 11,500 115,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) 1

Abon Compary has three service departments and two operating departments. Selected data conceming the five departments are presented below: The company allocates service department costs by the step down method in the following order: Administrative (number of employees), Janitorial (space occupled), and Equipment Maintenance (machine-hours). Required: Using the step-down method, allocate the service department costs to the operating departments. (Negotive amounts should be indicoted by o minus sign.)