Question

Departments Employees Kilowatt Hours Used Work Orders Issued Furniture 30 5,180 100 Decor 10 8,060 60...

Departments Employees Kilowatt Hours Used Work Orders Issued
Furniture 30 5,180 100
Decor 10 8,060 60
Power 6
Maintenance 4

Power department costs are $26,000. Maintenance Department costs are $30,000. Personnel Department costs are $4,000. The Personnel Department provides services to all departments. Use the step-down method of service department cost allocation and determine the amount of service department costs (Personnel, Power, and Maintenance) that will be charged to the Furniture Department.

Select one:

a. $41,210

b. $18,790

c. $0

d. $31,710

0 0
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Answer #1

Step down method

Power Maintenance Furniture Decor
Personnel department 480 320 2400 800
Power department 10360 16120
Maintenance department 18950 11370
Total 31710 28290

So answer is d) $31710

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