Samson Enterprises: Allocate costs using the step-down method
Not what you're looking for?
Samson Enterprises uses the step-down method to allocate service department costs to revenue-producing departments. The support departments, personnel and janitorial, allocate their costs based on the number of employees and departmental square footage, respectively. Relevant data are presented as follows:
Personnel Janitorial Department 1 Department 2
Employees 7 10 20 25
Square feet 3,000 1,000 10,000 15,000
Direct costs $400,000 $500,000 $1,500,000 $2,000,000
Allocate the personnel and janitorial costs to the revenue-producing departments using the step-down method.
Personnel costs allocated to janitorial ___________
Personnel costs allocated to Department 1 _________
Personnel costs allocated to Department 2 _________
Janitorial costs allocated to Department 1 _________
Janitorial costs allocated to Department 2 _________
Purchase this Solution
Solution Summary
The solution makes the calculations and explains the procedure.
Solution Preview
Personnel Janitorial Department 1 Department 2
Employees 7 10 20 25
Square feet 3,000 1,000 ...
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.