Step down method
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Department Financial Managerial Facilities Public Public Health Welfare
Budgeted costs $8,000 $4,000 $2,000 $5,000 $3,000
Sq. Ft. Occupied 25 15 10 30 20
Employees 150 100 50 60 30
Financial Transactions 35 20 20 40 20
I need to:
1. Calculate the total costs for Public Health and Public Welfare using the direct method. Use Financial Transactions for the Financial Dept, Employees for Managerial Dept and Sq. Ft. Occupied for Facilities.
2. Repeat requirement 1 using the step-down method beginning with Financial then Managerial and then Facilities
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Solution Summary
Solution describes how to allocate service department cost using direct method and step down method.
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