Costillo Corporation Has Two Service Departments, Service Department a and Service

Essay

Costillo Corporation has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y.
The company uses the step-down method to allocate service department costs to operating departments. Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base
B.
Required:
Allocate the service department costs to the operating departments using the step-down method.