A company has two supporting departments, Maintenance and Information

Systems, and two operating departments, the Machining Department and the Assembly Department. Each department’s overhead costs are shown below.

Information

Overhead costs
$6,300,000
$1,452,150
$4,000,000
$2,000,000
Maintenance hours
–
4,000
6,000
10,000
Information Systems hours
500
–
4,000
500

-Using the step-down method, the total overhead costs allocated to each operating department are Machining
-Assembly
–

–

–

–

–
– A.
– $8,187,025
-$5,565,125
–
– B.
– $7,653,300
-$6,098,850
–
– C.
– $5,451,350
-$8,300,800
–
– D.
– $8,300,800
-$5,451,350