What is the second step in allocating service department costs to production departments?
A)Assign overhead costs that are directly attributable to a service or production department.
B)Allocate other overhead costs based on appropriate cost drivers.
C)Allocate service department costs to production departments.
D)None of the answers is correct.

Question

Quizplus · Accepted Answer

The second step involves allocating other overhead costs based on appropriate cost drivers after directly attributable costs have been assigned.

What Is the Second Step in Allocating Service Department Costs