9,300 11,600
Logo employs the step-down method of allocating service department costs and begins
with the Systems Department. Which one of the following correctly denotes the amount
of the Systems Department’s overhead that would be allocated to the Facilities
Department and the Facilities Department’s overhead charges that would be allocated to
the Machining Department?
Systems to Facilities Facilities to Machining
a. $0 $20,000.
b. $19,355 $20,578.
c. $20,000 $20,000.
d. $20,000 $24,000.
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