The company does not distinguish between fixed and variable service department c

Question

The company does not distinguish between fixed and variable service department costs. Custodial costs are allocated on the basis of square feet occupied. Repair costs are allocated on the basis of the number of repair requests. Assume Custodial costs are allocated first.

Assume Grand uses the step-down allocation method. After all allocations, how much of the company's total overhead cost will be charged to the Finishing Department for the coming year? (Round your answer to the nearest dollar amount.)

Service Department Operating Department Custodial Repair Production Finishing   Departmental costs $ 5,124        $ 7,252      $ 52,000     $ 62,000        Square feet 200      2,200     3,700        Number of repair requests 250     100     

Explanation / Answer

$67,228

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