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Problem 17-24 Direct and Step-Down Methods of Service Department Cost Allocation (LO 17-1) [The following information applies to the questions displayed below.J Tampa Instrument Company manufactures gauges for construction machinery. The company has two production departments: Machining and Assembly. There are three service departments: Maintenance, Human Resources (HR), and Computer Aided Design (CAD). The usage of these service departments' output during the year just completed is as follows Provision of Service Output (in hours of service Provider of Service Maintenance User of Service HR Maintenance CAD Machining Assembly Total HR CAD 500 500 4,000 5,000 10,000 500 3,500 4,000 8,000 4,500 1,500 6,000 The budgeted costs in Tampa Instrument Company's service departments during the year are as follows: Variable Fixed Total HR $ 50,000 200,000 $250,000 Maintenance $ 80,000 150,000 $230,000 CAD 50,000 300,000 $350,000 Problem 17-24 Part 1 Required: 1. Use the direct method to allocate Tampa Instrument Company's service department costs to its production departments. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Production Departments MachiningAssembly Provider of Service HR Maintenance CAD Total Problem 17-24 Part 2 2. Determine the proper sequence to use in allocating the firm's service department costs by the step-down method. First step Second step Third step Problem 17-24 Part 3 3. Use the step-down method to allocate the company's service department costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Service Departments Production Departments Machining Assembly HR Maintenance CAD Total cost allocated to each department Problem 17-24 Part 3 3. Use the step-down method to allocate the company's service department costs. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Service Departments Production Departments Machining Assembly HR Maintenance CAD Allocation of CAD Department costs Allocation of HR Department costs Allocation of Maintenance Department costs Assembly Problem 17-24 Part 3 3. Use the step-down method to allocate the company's service department costs.(Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) Service Departments Production Departments Machining Assembly HR Maintenance CAD Allocation of HR Department costs Allocation of Maintenance Department costs Assembly Costs prior to allocation Machining 0

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