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Cost Allocation (Step-Down Method): Allocate the service department costs to the production departments using the step-down method, given the following data: Service Department A Costs:
Cost Allocation (Step-Down Method): Allocate the service department costs to the production departments using the step-down method, given the following data:
- Service Department A Costs: $300,000
- Service Department B Costs: $200,000
- Allocation Basis: Square footage (A: 60,000 sq. ft., B: 40,000 sq. ft.)
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