Martinez Company has two service departments,Maintenance and Personnel.Martinez Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: Assume the step-down method is used to allocate service department costs and the Maintenance Department is allocated first.Then the amount of cost allocated from the Personnel Department to the Maintenance Department would be ________.
A)$0
B)$3,539
C)$4,200
D)$4,998

Question

Martinez Company has two service departments,Maintenance and Personnel.Martinez Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year:  Assume the step-down method is used to allocate service department costs and the Maintenance Department is allocated first.Then the amount of cost allocated from the Personnel Department to the Maintenance Department would be ________.
A)$0 
B)$3,539 
C)$4,200 
D)$4,998

Quizplus · Accepted Answer

The Answer of Martinez Company has two service departments,Maintenance and Personnel.Martinez Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year:  Assume the step-down method is used to allocate service department costs and the Maintenance Department is allocated first.Then the amount of cost allocated from the Personnel Department to the Maintenance Department would be ________.
A)$0 
B)$3,539 
C)$4,200 
D)$4,998

Martinez Company Has Two Service Departments,Maintenance and Personnel