A soft drink bottler incurred the following factory utility cost: $9,246 for 5,200 cases bottled and $8,997 for 4,900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

Select one:

a. $1.81

b. $0.83

c. $1.78

d. $1.84

The step-down method of allocating service department costs:

Select one:

a. ignores some interdepartmental services.

b. is a simpler allocation method than the direct method.

c. is a less accurate method of allocation than the direct method.

d. can't be used when a company has more than two service departments.