Q3: The costs occurred in March has been allocated to each cost center. The cost of machines is 3.950.000 TL, and the accumulated depreciation of machines is 1.927.700 TL. The useful life of machine is 10 years and Declining Balance Method is chosen. The depreciation cost of machines will be allocated on the base of machine hours. The allocated cost of service cost centers will be re-distributed according to Step Ladder Method. Most serviceable department will be chosen according to total cost. Infirmary and Cafeteria will be allocated on the base of number of workers, Generator on the base of kwh and Maintenance and Repair on the base of maintenance and repair hour. The allocation keys of each item are as follows: Cost Centers/Costs Service Department Production Department Gristmil Cuttin Pasta I g Press Drying 17.00 25.000 18.000 Generato r Infirmar Y Cafeteri a Maintenanc e & Repair Total Cost 60.00 Direct Material Direct Labor 36.000 27.00 0 17.000 80.00 0 Factory Overhead Indirect Labor 3.000 2.700 5.800 9.000 4.866 8.000 33.36 6 21.70 0 5.000 4.800 3.900 4.100 2.400 1.500 ? ? ? ? ? ? ? ? Utility Depreciatio n Total of Primary Distribution ? ? ? ? ? ? ? ? Gristmill Pasta Press Generator Infirmary Cafeteria TOTAL Cutting Drying 394 Maintenance & Repair 100 640 453 410 250 0 2.247 Machine hours Number of Workers M&R Hours kwh 575 453 433 0 135 70 154 1.820 264 450 400 500 350 600 160 0 120 400 80 350 0 225 1.374 2.525 Required: Do the primary allocation of depreciation cost and re-distribute the cost-of-service cost centers. Prepare the Cost Allocation Sheet