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Problem 3: Allocation Statistics Purchasing Administration Purchase Orders (%) Total Salaries (%) Direct Cost ($) 5 Cost Centers Support: Purchasing Administration Mission: Soup Kitchens Counseling

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Problem 3: Allocation Statistics Purchasing Administration Purchase Orders (%) Total Salaries (%) Direct Cost ($) 5 Cost Centers Support: Purchasing Administration Mission: Soup Kitchens Counseling Total Cost 80,000 40,000 15 900,000 300,000 1,320,000 40 45 100 90 5 100 Part 1: Use the information in the table above to allocate costs to the mission centers using the direct distribution method. Part 2: Using the information from the table above allocate the costs using the step-down method. Compare the results with the results from your Part 1 allocation. Do they differ? Part 3: Using the information from the table above, allocate the costs using the step-down method, but change the order of step-down from that used when you solved Part 2. Do your results differ from those you found in Part 2

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