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option D is - 513,911 Save & ER Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has
option D is - 513,911
Save & ER Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: Service Department Operating Department General Physical Management Plant Sales After-Sales Departmental costs $ 36,550 $ 70,300 $ 412,500 $ 492,780 Employee time 5,000 2,000 27,000 14,000 Space occupied 1,000 1,000 38,000 7,000 General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to: Multiple Choice $516196 $515,880 $503,980 Step by Step Solution
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