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Help Seve & Exit Livie Corporation uses the step-down method to allocate department costs. They have three service departments, Maintenance, Logistics, and Accounting and
Help Seve & Exit Livie Corporation uses the step-down method to allocate department costs. They have three service departments, Maintenance, Logistics, and Accounting and two production departments, Fabrication and Assembly. The costs and cost drivers used by each department is as follows: Department Fabrication Cost Driver Units produced Costs $200,000 Assembly Direct labor hours $300,000 Maintenance Machine hours $158,000 Logisitics Accounting Square feet of space $90,000 Number of records $30,000 During the period, Livie produced a total of 110,000 units Livie allocates the department with the highest cost first. The departments had the following cost driver usage data: Fabrication Assembly Maintenance Logistics Accounting 52.500 6,400 DL hours 6,500 26,000 19,500 Machine 12,000 3,000 hours Square feet Records 9,750 3.250 9,000 5,400 600 67,500 7,500 15,000 7,500 9,600 9,600 1,600 4,800 How much total cost is allocated from Maintenance to Fabrication (do not round fractions/percentages, round the final answer to zero decimal places) The ABC Company has 4 departments in its factory consisting of two service departments; S1 and S2, and two production departments; P1 and P2. Each of the production departments produce a single product. The current costs of each department are: $1 $12,000 $2 $45,000 P1 $20,000 P2 $30,000 The distribution and consumption of departments' services is given in the following table: Services provided by: Service provided to: $1 S2 P1 P2 S1 S2 20% 60% 20% 10% - 70% 20% 1) What is the total cost incurred by Department P1 after the allocation of the service department costs on the basis of the Direct method? (1 mark) Enter amount only, do not use decimal points or commas 2) What is the total cost incurred by Department P2 after the allocation of the service department costs on the basis of the Direct method? (1 mark) Enter amount only, do not use decimal points or commas 3) What is the total cost incurred by Department P1 after the allocation of the service department costs on the basis of the step-down method? (1 mark) Enter amount only, do not use decimal points or commas 4) What is the total cost incurred by Department P2 after the allocation of the service department costs on the basis of the step-down method? (1 mark) Enter amount only, do not use decimal points or commas
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