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Corporation uses the step-down method to allocate service department costs to operating departments. The company has three service departments and two operating departments. Data
Corporation uses the step-down method to allocate service department costs to operating departments. The company has three service departments and two operating departments. Data concerning those departments follow: Costs Printing $430,000 Service Departments Operating Departments Admin. Janitorial Maintenance $162,500 $72,750 Binding $39,000 $462,000 33 10,000 132 295 15,000 30,000 30,000 # of employees 60 Sq. feet occ. 4,000 Hours of press time 190 90,000 60,000 () Admin. Department's costs are allocated on the basis of number of employees; Janitorial Department's costs are allocated on the basis of square feet occupied; Maintenance Department's costs are allocated on the basis of press time hours used. (Q:) What is (A:) $ 's total Binding Department's cost (including its beginning cost) after all allocations? () < Prev 11 of 20 Next > delete
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