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Please answer using the STEP METHOD Thank you. Chekley Manufacturing has two production departments (Machining and Assembly). They have two service departments that provide services
Please answer using the STEP METHOD
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Chekley Manufacturing has two production departments (Machining and Assembly). They have two service departments that provide services to each other and to production (Plant Maintenance and IT) Chekley believes Plant Maintenance (PM) should be allocated based on square footage and IT should be allocated based on computer hours. Chekley allocates Plant Maintenance first when allocating using the step method. You have the following additional information: Total costs $ 350,000 Information technology 250,000 $2,500,000 $ 2,000,000 5,100,000 COSTS Plant maintenance Assembly Square Feet hors Plant maintenance 4,000.00 8,000.00 2,000.00 4,000.00 12,000.00 24,000.00 6,000.00 8,000.00 24,000.00 44,000.00 Information systems Assembly 1. Under the step method, what percentage of PM should be allocated to IT? 2. Under the step method, what percentage of PM should be allocated to Machining? 3. Under the step method, what percentage of PM should be allocated to Assembly? 4. Under the step method, how much ofthe total allocable cost attributable to PM should be allocated to IT? 5. Under the step method, how much of the total allocable cost attributable to PM should be allocated to Machining 6. Under the step method, how much of the total allocable cost attributable to PM should be allocated to Assembly? 7. Under the step method, what percentage of IT should be allocated to PM? 8. Under the step method, what percentage of IT should be allocated to Machining? 9. Under the step method, what percentage of IT should be allocated to Assembly? of the total allocable cost attibutable to IT should be allocated to PM? 11.Under the step method, how much of the total allocable cost attributable to IT should be allocated to Machining? 12. Under the step method, how much of the total MOH cost attributable to IT should be allocated to AssemblyStep by Step Solution
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