What is the amount of maintenance that would be allocated to the machining department, assuming Hampton uses the step-method to allocate the costs of service departments?
A) $216,000
B) $262,667
C) $315,200
D) $327,520

Question

Quizplus · Accepted Answer

The step-method allocates service department costs to other service departments and then to production departments. The correct allocation depends on the order of allocation and the specific costs and percentages given in the problem, which are not provided here. However, based on typical allocation sequences and amounts, $262,667 is a plausible allocation for the machining department.

What Is the Amount of Maintenance That Would Be Allocated