Step Method

O out of 2 points Staff Company allocates common Building Department costs to producing departments (P1 and P2) based on space occupied, and it allocates common Personnel Department costs based on the number of employees. Space occupancy and employee data are as follows: Building Personnel Dept P1 Dept P2 Space occupied 2 000m 10 000m 120 000m 70 000m Employees 6 10 80 150 If Staff Company uses the step allocation method and the support department with the highest percentage of interdepartmental services is allocated first, the ratio representing the portion of Personnel Department costs allocated to Department P2 is Selected Answer: 50/130 Answers: 50/140 50/146 90/140 50/130