Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow: Service Departments Service Operating Departments Operating Service Operating Department A Department B $ 43,000 Department Y $ 311,700 Department X $ 31,000 $ 251,800 Departmental costs Allocation base A 4,900 2,000 26,000 12,000 Allocation base B 6,000 2,000 32,000 4,000 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. The total Operating Department Y cost after allocations is closest to: Multiple Choice $321,000 3 of 10 Next > Prev
Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow: Service Departments Service Operating Departments Operating Service Operating Department A Department B $ 43,000 Department Y $ 311,700 Department X $ 31,000 $ 251,800 Departmental costs Allocation base A 4,900 2,000 26,000 12,000 Allocation base B 6,000 2,000 32,000 4,000 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. The total Operating Department Y cost after allocations is closest to: Multiple Choice $321,000 3 of 10 Next > Prev
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 3E
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