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Pfizer allocates service department costs: Administration $1,200,000, Maintenance $800,000, allocated to Production and Sales. Requirements: Determine allocation rates using the step-down method. Allocate costs to

  1. Pfizer allocates service department costs: Administration $1,200,000, Maintenance $800,000, allocated to Production and Sales.
    • Requirements:
      • Determine allocation rates using the step-down method.
      • Allocate costs to each operating department.
      • Prepare a cost allocation report.
      • Compare results with the direct method.

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