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Question 4 18 out of 0 points View Rubric ABC Co. has two production Departments: Assembly and Machining and two service departments: Personnel and Cafeteria.
Question 4 18 out of 0 points View Rubric ABC Co. has two production Departments: Assembly and Machining and two service departments: Personnel and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of July, 2012 are as follows: Proportion of Services Used by: Department Direct costs Personnel Cafeteria Machining Assembly Personnel $30,000 0.40 0.30 0.30 Cafeteria $50,000 0.20 0.50 0.30 Machining $80,000 Assembly $70,000 Required: Compute the allocation of service department costs to producing departments for July, 2012 using the step-method considering the Personnel department as the 1st department
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