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The Downhill Dash Company has prepared division overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead
The Downhill Dash Company has prepared division overhead budgets for budgeted-volume levels before allocations as follows: (Click the icon to view the department overhead budgets.) Management has decided that the most appropriate inventory costs are achieved by using individual division overhead rates. These rates are developed after support division costs are allocated to operating divisions. Bases for allocation are to be selected from the following: (Click the icon to view the data.) Required Using the step-down method, allocate support division costs. Allocate the costs of the support division in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing divisions by allocating costs.) Support Divisions Operating Divisions Data table Costs incurred Allocation of costs: Bldg and Grounds Personnel General Plant Admin. Cafeteria Operating Loss Storeroom Machining Assembly Building and grounds Personnel General plant administration Cafeteria Storeroom Total budgeted costs of operating divisions Support departments: Building and grounds Personnel General plant administration Cafeteria: operating loss Storeroom Operating departments: Machining Assembly Total for support and operating departments $ 24,000 1,850 45,280 10 8,925 $ 80,065 $ 33,000 50,500 83,500 $ 163,565
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