Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. $$\begin{array} { | l | c | c | c | c | c | }
\hline & { \text { Support Departments } } &&& \text { Operating Departmeats } \
\hline & \text { Personnel } & \text { Cafeteria } & \text { Maintenance } & \text { Machining } & \text { Assernbly } \
\hline \text { Personnel } & & 10 \% & 20 \% & 30 \% & 40 \% \
\hline \text { Cafeteria } & 10 \% & & 20 \% & 40 \% & 30 \% \
\hline \text { Maintenance } & 10 \% & 20 \% & & 50 \% & 20 \% \
\hline
\end{array}$$ For the step-down method, what proportion of the Cafeteria's costs will be allocated to the Maintenance Department if the allocation order is Personnel, Cafeteria and Maintenance?
A) 20%
B) 14.3%
C) 22.2%
D) 30%

Question

Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. $$\begin{array} { | l | c | c | c | c | c | } 
\hline &  { \text { Support Departments } } &&& \text { Operating Departmeats } \
\hline & \text { Personnel } & \text { Cafeteria } & \text { Maintenance } & \text { Machining } & \text { Assernbly } \
\hline \text { Personnel } & & 10 \% & 20 \% & 30 \% & 40 \% \
\hline \text { Cafeteria } & 10 \% & & 20 \% & 40 \% & 30 \% \
\hline \text { Maintenance } & 10 \% & 20 \% & & 50 \% & 20 \% \
\hline
\end{array}$$ For the step-down method, what proportion of the Cafeteria's costs will be allocated to the Maintenance Department if the allocation order is Personnel, Cafeteria and Maintenance?
A) 20%
B) 14.3%
C) 22.2%
D) 30%

Quizplus · Accepted Answer

The Answer of Molten Works Ltd provides the following information about departmental consumption of allocation bases for its 3 support and 2 operating departments. $$\begin{array} { | l | c | c | c | c | c | } 
\hline &  { \text { Support Departments } } &&& \text { Operating Departmeats } \
\hline & \text { Personnel } & \text { Cafeteria } & \text { Maintenance } & \text { Machining } & \text { Assernbly } \
\hline \text { Personnel } & & 10 \% & 20 \% & 30 \% & 40 \% \
\hline \text { Cafeteria } & 10 \% & & 20 \% & 40 \% & 30 \% \
\hline \text { Maintenance } & 10 \% & 20 \% & & 50 \% & 20 \% \
\hline
\end{array}$$ For the step-down method, what proportion of the Cafeteria's costs will be allocated to the Maintenance Department if the allocation order is Personnel, Cafeteria and Maintenance?
A) 20%
B) 14.3%
C) 22.2%
D) 30%

Molten Works Ltd Provides the Following Information About Departmental Consumption