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The Western Mountain Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows:

Management has decided that the most appropriate inventory costs are achieved by using individual department overhead rates. These rates are developed after support-department costs are allocated to operating departments. Bases for allocation are to be selected from the following:

Using the step-down method, allocate support-department costs. Allocate the costs of the support departments in the order given in this problem. (Round all indirect allocation rates to the nearest cent and all other computations to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs.)

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		Support Departments					Operating Departments
				General	Cafeteria
		Bldg and		Plant	Operating
		Grounds	Personnel	Admin.	Loss	Storeroom	Machining	Assembly
Costs incurred
Allocation of costs:
	Building and grounds
	Personnel
	General plant administration
	Cafeteria
	Storeroom
Total budgeted costs of operating departments

- X i Data Table Support departments: Building and grounds $ Personnel General plant administration Cafeteria: Operating loss 49,000 2,120 22,860 1,290 1,570 $ Storeroom 76,840 Operating departments: Machining $ 34,000 48,000 Assembly 82,000 $ 158,840 Total for support and operating departments Print Done

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