TSLA Industries provides the following information about departmental consumption of allocation bases for its 2 support (Personnel and Cafeteria) and 2 operating (Machining and Assembly) departments:

Support Departments Operating Departments

Personnel Cafeteria Machining Assembly

Direct Costs: $32,000 $20,000

Services Provided By:

Personnel 30% 30% 40%

Cafeteria 20% 40% 40%

TSLA uses the Step-down method and the cost allocation sequence is based on a ranking of the percentage of services provided to other support departments, which of the following best describes this procedure?

Cafeteria departments costs are allocated to Assembly and Machining, then Personnels costs are allocated to Assembly and Machining.

Personnel departments costs are allocated to Cafeteria, Assembly and Machining, then Cafeterias costs are allocated to Assembly and Machining.

Personnel departments costs are allocated to Assembly and Machining, then Cafeterias costs are allocated to Assembly and Machining.

Cafeteria departments costs are allocated first to Personnel, Assembly and Machining, then Personnels costs are allocated to Assembly and Machining.

none of the answers