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The following organization chart shows the structure of Buddy's Nursery: Buddy's Support Departments Operating Departments Personnel Marketing Landscaping Accounting & Administration Fleet Operations Gardening Center

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The following organization chart shows the structure of Buddy's Nursery: Buddy's Support Departments Operating Departments Personnel Marketing Landscaping Accounting & Administration Fleet Operations Gardening Center Lawn Care The following matrix, illustrates each support department's cost and how it spends its time: Support Department User of Support Personnel Accounting & Marketing Fleet Service Administration Operations Personnel 5% Accounting & Administration 8% The following matrix, illustrates each support department's cost and how it spends its time: - Support Department User of Support Personnel Accounting & Marketing Fleet Service Administration Operations Personnel Accounting & Administration 5% 8% Marketing 10% Fleet Operations 5% 10% 50/ 10% Gardening Center Landscaping Lawn Care 15% 25% 40% 25% 30% 20% 7% 40% 45% TOTAL COST $50,000 $80,000 $240,000 $200,000 1. Using the step-down method of support department cost allocation, determine the total support cost allocated to each operating department. Allocate costs in the following order: A8A, Personnel, Fleet Operations, Marketing. 2. Explain why the order of allocation given in part 1, above, may have been chosen

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