Question
Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Personnel department has total
Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Personnel department has total overhead costs of $74,000; Cafeteria department has total overhead costs of $180,000 and Maintenance department has total overhead costs of $103,000 Support departments Operating departments Personnel Cafeteria Maintenance Machining Assembly Personnel 26% 34% 19% 21% Cafeteria 22% 33% 17% 28% Maintenance 25% 21% 26% 28% 4 Required: Applying the step-down method, compute the total overheads from support departments allocated to Assembly department if the allocation order is personnel, cafeteria and maintenance. Workings on cost allocation steps should be provided for partial marks.
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