Reference no: EM132587749

Apple has 2 service departments (accounting and maintenance) and 2 operating departments (lawnmower and weed wacker). Apple's management has decided to allocate accounting costs on the basis of the number of employees, and maintenance costs on the basis of service hours used. below is the data concerning apple's current operations

                         accounting            maintenance            lawnmower               weed wacker

Overhead costs           $340,000              $510,000             $787,500                   $612,500

# of employees                                         10                       40                           50

service hours              20                                                      500                          480

Question 1: Allocate the service departments costs to the two operation department using step-down method. the department wit higher overhead cost would be ranked first. show the work please.