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Daineis Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant,
Daineis Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The totai After-Sales Department cost after allocations is closest to: Multiple Choice $306,575 $315,075 $312,429 $315,211
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