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0/7 pts Incorrect Question 2 The following information relates to Ray Corporation for the past accounting period. Direct Costs Service Dept A Service Dept B
0/7 pts Incorrect Question 2 The following information relates to Ray Corporation for the past accounting period. Direct Costs Service Dept A Service Dept B Producing Dept C Producing Dept D $80,000 60,000 15,000 20,000 Proportion of service by B to: 30% Proportion of service by A to: 10% 60% 20% D 30% D 50% Using the Step Down Method and assuming that Department A Allocates first, How much of department B's cost is allocated to department C. Please round all percentages to the nearest hole percentage. For example, 31.42 would be 31% 67720 17,400 19,720 98,000 8,000 O 17,400 O 19,720 98,000 8,000 Service A Service B Prod C Prod D Direct Costs $ 80,000 $ A 10 60 30 B 30 20 50 Normal Activity 60,000 Percentage Use of Each Service Department Service A Service B Prod C Prod D Total A 10% 60% 30% 100 B 29% 71% 70 From Service Depts: Department Costs Service A Service B Prod C Prod DA $ 80,000 $ 8,000 $ 48,000 $ 24,000 B 68,000 $ 19,720.00 $ 48,280.00
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