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

Question

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

Quizplus · Accepted Answer

The Answer is B

Castle Corporation Has Two Service Departments and Two Operating Departments