Management Accounting

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Flinders

Company has two service departments, Factory Administration and

Maintenance, and two operating departments. Selected information

relating to these departments is given below:

The

company allocates service department costs by the step-down method.

Factory Administration costs are allocated first on the basis of number

of employees, and then Maintenance costs are allocated on the basis of

total labor hours.

Required:

Prepare a schedule showing the allocation of service department costs to other departments. (Leave

no cells blank - be certain to enter "0" wherever required. Negative

amounts should be indicated by a minus sign. Do not round intermediate

calculations. Omit the "$" sign in your response.)

	Service Departments		Operating Departments
	Factory Administration	Maintenance	X	Y
Departmental costs
Allocations:	($)?	($)?	($)?	($)?
Factory Administration:	?	?	?
Maintenance:	?	?	?	?

Total costs after allocations:	($)?	($)?	($)?	($)?

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