Question 10:

a) You are presented with the following support department information:

Service provider and allocation base

Support departments

Manufacturing lines

	Department A	Department B	Department C	Line 1	Line 2
Department A (number of jobs)	100	300	200	250	350
Department B (number of employees)	None	None	20	500	500
Department C (number of jobs)	25	80	None	300	420

Support department costs are as follows:

Department A:	$1,100,000
Department B:	$504,000
Department C:	$760,000

Task

Allocate support department costs to Manufacturing line 1 and Manufacturing line 2 using the step-down method.