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Arbon Company has three service departments and two operating departments. Selected data concerning the five...

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Accounting

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Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below Service Departments Operating Departments Equipment Administrative Janitorial Maintenance Prep $90,000 $67,800 $36,000 $256,100 240 600 Finishing $498,600 Total $948,500 1.280 Costa Number of employees Square metres of space occupied Machine-hours 300 1,200 1,000 2,000 22,000 7,000 44,000 11,500 66,000 The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupled), and Equipment Maintenance (machine-hours) Required: Using the step-down method, allocate the service department costs to the operating departments. (Negative amounts should be indicated by a minus sign.) Operating Service Departments Service Departments Departments Administrativinitorial Maintenance Prep Finishing Total Departmental costs before allocations Allocations: Administrative Janitorial Maintenance Total costs after allocation

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