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The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria
The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: Support Departments Operating Departments Maintenance Cafeteria Cutting Packaging Direct costs $ $ $ $ Number of employees Square feet If the stepdown method is used and maintenance is allocated first, the total cost allocated to the cutting department will be $ $ $ $ I need help with explanation. Thank you!
The accountant for Sam Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:
Support Departments Operating Departments
Maintenance Cafeteria Cutting Packaging
Direct costs $ $ $ $
Number of employees
Square feet
If the stepdown method is used and maintenance is allocated first, the total cost allocated to the cutting department will be
$
$
$
$ I need help with explanation. Thank you!
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