What is the amount of total service costs allocated to the assembly department, assuming Hampton uses the step-method to allocate the costs of service departments?
A) $151,666
B) $171,583
C) $129,000
D) $551,583

Question

Quizplus · Accepted Answer

The step method of cost allocation typically involves allocating the costs of the service departments to the operating departments in a sequential manner, starting with the service department that provides the most services to other service departments. Without the specific details of the service departments' costs and the basis of allocation, it's not possible to provide a detailed calculation. However, the correct answer is chosen based on the information provided in the question, assuming it's a test of understanding the step method's outcome rather than the calculation process itself.

What Is the Amount of Total Service Costs Allocated to the Assembly