Castle Company has two service departments and two user departments.The number of employees in each department is: The fixed costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to the Cafeteria under the step method would be:
A)$0.
B)$1,718.75.
C)$1,687.50.
D)$1,802.18.

Question

Castle Company has two service departments and two user departments.The number of employees in each department is:  The fixed costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to the Cafeteria under the step method would be:
A)$0. 
B)$1,718.75. 
C)$1,687.50. 
D)$1,802.18.

Quizplus · Accepted Answer

The Answer of Castle Company has two service departments and two user departments.The number of employees in each department is:  The fixed costs of the Personnel Department are allocated on a basis of the number of employees.If these costs are budgeted at $37,125 during a given period,the amount of cost allocated to the Cafeteria under the step method would be:
A)$0. 
B)$1,718.75. 
C)$1,687.50. 
D)$1,802.18.

Castle Company Has Two Service Departments and Two User Departments