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XYZ Corporation operates multiple service departments and wants to allocate their costs to the production departments using the step-down method. The costs of the service

XYZ Corporation operates multiple service departments and wants to allocate their costs to the production departments using the step-down method. The costs of the service departments are as follows:

  • Service Department A: $100,000
  • Service Department B: $150,000
  • Service Department C: $200,000

Allocate the service department costs to the production departments based on the following distribution sequence: A ➔ B ➔ C.

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