How much rent would be charged to S4 using the step method of allocation and a S3-S4-S1-S2 sequence for the allocations?
A)$36,000
B)$40,000
C)$54,000
D)$90,000

Question

Quizplus · Accepted Answer

The step method allocates costs sequentially. Given the sequence S3-S4-S1-S2, S3's costs are allocated first, followed by S4. The rent charged to S4 is calculated based on this sequence, resulting in $40,000.

How Much Rent Would Be Charged to S4 Using the Step