Pardee, Inc. allocates engineering costs on the basis of the supervisor's time and administration costs on the basis of the number of employees. The company's accountant determined that engineering provides more services to administration than administration provides to engineering. The following data have been collected: If the step-down method is used and engineering costs are allocated first, the fraction of engineering costs allocated to the assembly department will be:
A) 35/55
B) 35/100
C) 35/70
D) 35/85

Question

Pardee, Inc. allocates engineering costs on the basis of the supervisor's time and administration costs on the basis of the number of employees. The company's accountant determined that engineering provides more services to administration than administration provides to engineering. The following data have been collected:  If the  step-down method is used and engineering costs are allocated first, the fraction of engineering costs allocated to the assembly department will be:
A) 35/55 
B) 35/100 
C) 35/70 
D) 35/85

Quizplus · Accepted Answer

The Answer of Pardee, Inc. allocates engineering costs on the basis of the supervisor's time and administration costs on the basis of the number of employees. The company's accountant determined that engineering provides more services to administration than administration provides to engineering. The following data have been collected:  If the  step-down method is used and engineering costs are allocated first, the fraction of engineering costs allocated to the assembly department will be:
A) 35/55 
B) 35/100 
C) 35/70 
D) 35/85