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.

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.

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.

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