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    Revenue Centre Step Down Method

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    Using the following example, allocate service center costs to each of the three revenue centers using the step-down method:
        

    Costs    Square Feet      Meals      Employees

    Service Centers
    Maintenance       150,000 - 2,500 10
    Dietary                 400,000 10,000 - 15
    Administrative    600,000 20,000 2,500 10

    Revenue Centers
    Laboratory  600,000 30,000 2,500 20
    Radiology  800,000 40,000 2,500 30
    Nursing 2,000,000 100,000 30,000 50

    4,550,000 200,000 40,000 135

    © BrainMass Inc. brainmass.com June 3, 2020, 5:18 pm ad1c9bdddf
    https://brainmass.com/business/accounting/revenue-centre-step-down-method-20731

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    Uses Step-down method for allocating service center costs to each of the three revenue centers.

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