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Russet Company has two Service Departments and two Producing Departments. Budgeted costs and budgeted activity in the various departments for the most recent year are

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Russet Company has two Service Departments and two Producing Departments. Budgeted costs and budgeted activity in the various departments for the most recent year are presented below: Custodial Cafeteria Services $252,000 $140,000 1,000 2,000 Cutting Department $600,000 8,000 AS Depa $9 Overhead Costs Square Metres of Space Occupied Number of Employees Machine Hour 20 30 150 40,000 Service Department costs are allocated to producing Departments with the costs of Custodial Services allocated first on the basis of square metres of space occupied. The costs of the Cafeteria are allocated on the basis of number of employees. Predetermined overhead rates in the Cutting and Assembly departments are based on machine hours. Round all calculations to the nearest dollar. (Appendix 11A) Under the step-down method of allocation, what would be the amount of Custodial Services cost allocated to the Assembly Department? $0. $120,000 $126,000. $140,000. 1 costs and budgeted activity in the various departments for the most recent presented below: Custodial Cafeteria Services $252,000 $140,000 1,000 2,000 Cutting Department $600,000 8,000 Assembly Department $900,000 10,000 ad Costs Metres of Space ed of Employees 2 Hour 20 30 150 40,000 200 60,000 Department costs are allocated to producing Departments with the costs of I Services allocated first on the basis of square metres of space occupied. s of the Cafeteria are allocated on the basis of number of employees. mined overhead rates in the Cutting and Assembly departments are based ne hours. Round all calculations to the nearest dollar. x 11A) Under the step-down method of allocation, what would be the of Custodial Services cost allocated to the Assembly Department? ,000. ,000. ,000

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