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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 $360,000 of costs, administration incurred $558,000, and maintenance incurred $170,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% Administration 10% 15 Maintenance 15 10 Assembly 40 50 45 Finishing 35 30 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments? To Administration $ OX To Maintenance 69,300 X To Assembly 184,800 X To Finishing OX Total 415,800 x 2. What amount of cost should be assigned from administration to each of the other departments? To Administration $ 0 0 To Maintenance 55,800 x To Assembly OX To Finishing OX Total $ OX 3. What amount of cost should be assigned from maintenance to each of the other departments? To Administration $ To Maintenance To Assembly To Finishing Total 0 0 % 0 % OX $ b. What total support department cost was assigned in October? OX To Assembly $ To Finishings 0 %
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