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The TYU Company separates its activities into two operating departments and two support departments. Support...

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Accounting

The TYU Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $50,000 and Support Department 2 had budgeted costs of $100,000 during the month of June. TYU allocates the costs of each support department based on service hours. The table presented here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself.

Support 1 Support 2 Operating 1 Operating 2 Total Service Hours Provided
Support 1 50 200 400 400 1,050
Support 2 250 250 300 200 1,000

If TYU uses the stepdown method starting with Support Department 1 to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in June?

Group of answer choices

$81,667 and $68,333

$82,857 and $67,143

$85,000 and $65,000

$86,000 and $64,000

Answer & Explanation Solved by verified expert
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