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Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step
Step method Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $576,000 of costs, administration incurred $892,800, and maintenance incurred $272,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance 10% 5% Administration 15 Human resources 10% Maintenance 15 10 40 50 Assembly Finishing 45 35 35 30 3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration $ 0 To Maintenance $ 0 To Assembly 244,530 x To Finishing 190,190 x Total $ 434,720 x
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