Bowmanville Manufacturing Company Uses the Step-Down Method for Allocating Its $\underline {\text { Supplied By } }$

question 2

Multiple Choice

Bowmanville Manufacturing Company uses the step-down method for allocating its support department costs to operating departments. The overhead costs of support Department A are to be allocated first, followed by the costs of Department B, and then those of Department C. The distribution of services is as follows: $\underline {\text { Supplied By } }$ $\quad$ $\quad$ $\underline {\text { Support Departments } }$ $\quad$ $\quad$$\underline {\text { Operating Departments } }$
$\begin{array} { c l c c c c c } && \quad\quad\quad\quad\quad\quad\text { A } & \text { B } & \text { C } && \quad\quad\quad\quad\quad\text { X } & \text { Y } \\\text { A } && \quad\quad\quad\quad\quad\quad- & 10 \% & 50 \% && \quad\quad\quad\quad\quad20 \% & 20 \% \\\text { B } & &\quad\quad\quad\quad\quad\quad40 \% & - & 15 \% &&\quad\quad\quad\quad\quad30 \% & 15 \% \\\text { C } &&\quad\quad\quad\quad\quad\quad25 \% & 25 \% & - & &\quad\quad\quad\quad\quad20 \% & 30 \%\end{array}$ The percentage of Support Department B's costs allocated to Operating Department Y is:

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