Casas Corporation has two service departments, Personnel and Cafeteria, and two operating departments, Customer Care and Customer Solutions. The number of employees in eachdepartment are:Personnel8CafeteriaCustomer Care32Customer Solutions11Total58The fixed costs of the Personnel Department are allocated on the basis of the number of employees. If these costs are budgeted at $42,150, the amount of Personnel Department costallocated to the Cafeteria under the step-down method would be closest to:Multiple Choice$19,670$5,901$0$5,087

Under stepdown method of cost allocation, indirect costs or overheads are allocated by allocating…

Casas Corporation has two service departments, Personnel and Cafeteria, and two operatıng departments, Customer Care ana Customer Solutions. Tne number of employees in each department are: Personnel 8 Cafeteria 7 Customer Care Customer Solutions 32 11 Total 58 The fixed costs of the Personnel Department are allocated on the basis of the number of employees. If these costs are budgeted at $42,150, the amount of Personnel Department cost allocated to the Cafeteria under the step-down method would be closest to: Multiple Choice $19,670 $5,901

Casas Corporation has two service departments, Personnel and Cafeteria, and two operatıng departments, Customer Care ana Customer Solutions. Tne number of employees in each department are: Personnel 8 Cafeteria 7 Customer Care Customer Solutions 32 11 Total 58 The fixed costs of the Personnel Department are allocated on the basis of the number of employees. If these costs are budgeted at $42,150, the amount of Personnel Department cost allocated to the Cafeteria under the step-down method would be closest to: Multiple Choice $19,670 $5,901

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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