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EXERCISE 48 - 3 Step - Down Method [ LOTT] Arbon Company has three service departments and two operating departments . Selected data concerning the
EXERCISE 48 - 3 Step - Down Method [ LOTT] Arbon Company has three service departments and two operating departments . Selected data concerning the five departments are presented below " Operating Service Departments EQUIPITIENT Administrative Janitorial Maintenance PREP Finishing Total $54,000 1:30.090 $256. 100 THES, EDO $942,50 0 HUNTLEY OF EMPLOYEES . . . . . ! ! ! ! BO 240 $.00 1. 240 Square feet of space Occupied .. 2,009 1 2, 000 10.090 201.000 70. 000 1 15.010 Machine hiours .... . . . . . . . .. . 10. 000 20, 000 40.090 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 )
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