SteamCo Corporation has two support departments, Administration and Accounting and
two operating departments, North and South. Administration costs are allocated on the
basis of employees and Accounting costs are allocated on the basis of number of
transactions. Operations for November are as follows:
	ADMINISTRATION	ACCOUNTING	NORTH	SOUTH
Budgeted Costs	$360,000	$100,000	$261,000	$689,000
Number of employees	12	6	18	30
Processing time (mins.)	1,000	20	500	4,500
Space occupied	1,450	300	875	1,500
Transactions	35,000	15,000	10,000	40,000
REQUIRED:
1. Rank the service departments based on the highest percentage of their services provided
to the other service department and use this ranking to allocate the service departments'
costs to the operating departments based on the step method.