Using the step down method allocate the service department

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Reference no: EM13964917

1. Arbon Company has three service departments and two operating departments. Selected data concerning the five departments are presented below:

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The company allocates service department costs by the step-down method in the following order: Administrative (number of employees), Janitorial (space occupied), and Equipment Maintenance (machine-hours).

Required: 

Using the step-down method, allocate the service department costs to the operating departments. 

Reference no: EM13964917

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