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Question - Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. Personnel department has total overhead costs of $40,000; Cafeteria department has total overhead costs of $98,000 and Maintenance department has total overhead costs of $78,000.
Support departments
Operating departments
Personnel
Cafeteria
Maintenance
Machining
Assembly
21%
32%
13%
34%
19%
31%
24%
26%
22%
25%
Applying the step-down method, calculate the total overheads from support departments allocated to Assembly department if the allocation order is personnel, cafeteria and maintenance?
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