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The following information relates to Osceola Corporation for the past accounting period. Direct costs Service Department A $ 98,800 Service Department B 69, 000 Producing Department C 34, 600 Producing Department D 23, 000 Proportion of service by A to: B 10% C 60% D 30% Proportion of service by B to: A 30% C 20% D 50% Using the reciprocal ( simultaneous solution) method, Department A's cost allocated to Department C is: Multiple Choice $70,080. $59,280. $109,280. $73,918.

The following information relates to Osceola Corporation for the past accounting period. Direct costs Service Department A $ 98,800 Service Department B 69, 000 Producing Department C 34, 600 Producing Department D 23, 000 Proportion of service by A to: B 10% C 60% D 30% Proportion of service by B to: A 30% C 20% D 50% Using the reciprocal ( simultaneous solution) method, Department A's cost allocated to Department C is: Multiple Choice $70,080. $59,280. $109,280. $73,918.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to Osceola Corporation for the past accounting period. Direct costs Service Department A $ 98,800 Service Department B 69,000 Producing Department C 34, 600 Producing Department D 23,000 Proportion of service by A to: B 10% C 60% D 30% Proportion of service by B to: A 30% C 20% D 50% Using the reciprocal ( simultaneous solution) method, Department A's cost allocated to Department C is: Multiple Choice $70,080. $59,280. $109,280. $73,918.
Transcribed Image Text:The following information relates to Osceola Corporation for the past accounting period. Direct costs Service Department A $ 98,800 Service Department B 69,000 Producing Department C 34, 600 Producing Department D 23,000 Proportion of service by A to: B 10% C 60% D 30% Proportion of service by B to: A 30% C 20% D 50% Using the reciprocal ( simultaneous solution) method, Department A's cost allocated to Department C is: Multiple Choice $70,080. $59,280. $109,280. $73,918.
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