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Allocation of service costs-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:
Full-time
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

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Allocates service center costs to the revenue centers using the step-down method.

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