Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow: Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.In the first step of the allocation, the amount of Service Department A cost allocated to the Operating Department X is closest to:
A) $24,360
B) $21,924
C) $16,948
D) $24,914

Question

Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow:  Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.In the first step of the allocation, the amount of Service Department A cost allocated to the Operating Department X is closest to:
A) $24,360 
B) $21,924 
C) $16,948 
D) $24,914

Quizplus · Accepted Answer

The Answer of Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow:  Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.In the first step of the allocation, the amount of Service Department A cost allocated to the Operating Department X is closest to:
A) $24,360 
B) $21,924 
C) $16,948 
D) $24,914

Strzelecki Corporation Uses the Step-Down Method to Allocate Service Department