Danville Manufacturing The Danville Manufacturing Company has two service departments and two production departments. The following data are available for 2011.
The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied, respectively.
Assuming that Danville Manufacturing Company allocates service department 1 costs first, the amount of service department 2 costs allocated to production department 1 under the step-down method would be:
A) $3,200
B) $4,000
C) $3,000
D) $2,400
Correct Answer:
Verified
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