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Accounting Assignment | Custom Assignment Help

– Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service departments to operating departments. The company has two support departments (Human Resource and Information Technology) and two operating departments (Hot Rolled Hollow Steel and Cold Rolled Hollow Steel).

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Al Yamamah Steel Industries Co. decided to allocate Human Resource department costs based on the number of employees in each department and Information Technology costs based on the number of machine-hours in each department.  

3- Al Yamamah Steel Industries Co. uses the step method for allocating the costs of its service departments to operating departments. The company has two support departments(Human Resource and Information Technology) and two operating departments (Hot Rolled Hollow Steel and ColdRolled Hollow Steel). Al Yamamah Steel Industries Co. decided to allocate HumanResource department costs based on the number of employees in each department and Information Technology costs based on the number of machine-hours in each department. (4 Points). Required:a- Give a numerical example for the four departments as given information. Support Departments Operating Departments TOTAL Human Information Hot Rolled cold RolledResource Technology Hollow Steel Total department costNumber of employees Number of machine-hours b- Then based on your given information, use the step-down method to allocate support department costs. Allocate cost: Human Resource Information Technology TOTAL

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