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Megan company has two support departments and two operating departments, the following is the data related to the cost of these departments. Items Support Departments
Megan company has two support departments and two operating departments, the following is the data related to the cost of these departments. Items Support Departments maintenance IS 6600000 234500 Production Departments production Assembly 540000W 3700000 Budgeted overhead cost Support Department Budgeted labor hours Percentage (%) Budgeted computer hours Percentage (%) 2000 20 % 5000 30% 6000 7000 50% 300 300 20% 60% 20% Required: Use the previous data to allocate the total cost of the two support departments (IT and maintenance) to the two production departments using step down method knowing that the Maintenance department will be distributed firstly
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