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Question 24 1 pts Financial Advisory Inc. has two support departments, Legal and Accounting. These support departments provide services to each other and to
Question 24 1 pts Financial Advisory Inc. has two support departments, Legal and Accounting. These support departments provide services to each other and to the two operating departments, Outsourcing and Transaction Services. The Legal department's cost is allocated based on number of employees while the Accounting department's cost is allocated based on total payroll (in dollars). The following information has been provided by the company: Cost Legal Accounting Outsourcing Trans. Serv $700,000 $800,000 Total payroll $400,000 $600,000 $3,000,000 $1,000,000 No. of employees 6 25 5 Using the step-down method where Legal's cost is allocated first, the total amount of Accounting's cost that is allocated to Outsourcing is closest to: $ 3554 861 $644 000 $545.000 O $687 500
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