The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: Budgeted hours of service:
If Elliot Manufacturing uses the step-down method of allocating support costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be:
A) $70,000
B) $108,000
C) $162,000
D) $200,000

Question

The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information:  Budgeted hours of service: 
If Elliot Manufacturing uses the step-down method of allocating support costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be:
A) $70,000 
B) $108,000 
C) $162,000 
D) $200,000

Quizplus · Accepted Answer

The Answer of The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information:  Budgeted hours of service: 
If Elliot Manufacturing uses the step-down method of allocating support costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be:
A) $70,000 
B) $108,000 
C) $162,000 
D) $200,000

The Managers at Elliot Manufacturing Are Discussing Ways to Allocate