What is the amount of maintenance that would be allocated to the machining department, assuming Hampton uses the step-down method (starting with Supervision, then Maintenance) to allocate the costs of service departments? A) $252,000 B) $378,000 C) $226,800 D) $240,000 The correct answer is $252,000. The amount of Supervision’s costs allocated to Maintenance = $120,000 * 15% = $18,000. Maintenance department’s costs to be allocated now equal $378,000 ($360…
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