Casas Corporation has two service departments, Personnel and Cafeteria, and two operating departments, Customer Care and Customer Solutions. 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 $42,570, the amount of Personnel Department cost allocated to the Cafeteria under the step-down method would be closest to:
A) $0
B) $3,960.00
C) $3,870.00
D) $2,433.75
Correct Answer:
Verified
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