Rainier Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are to be allocated first, followed by the costs of B, and then those of C. The distribution of services is as follows:
Required:
a. Calculate the percentage of B's costs that should be allocated to Y.
b. Calculate the percentage of C's costs that should be allocated to B under the step-down method.

Question

Rainier Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are to be allocated first, followed by the costs of B, and then those of C. The distribution of services is as follows:
  Required:
a. Calculate the percentage of B's costs that should be allocated to Y.
b. Calculate the percentage of C's costs that should be allocated to B under the step-down method.

Quizplus · Accepted Answer

The Answer of Rainier Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are to be allocated first, followed by the costs of B, and then those of C. The distribution of services is as follows:
  Required:
a. Calculate the percentage of B's costs that should be allocated to Y.
b. Calculate the percentage of C's costs that should be allocated to B under the step-down method.

Rainier Manufacturing Company Uses the Step-Down Method for Allocating Its