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 Physical Management Plant $ 33,384 $ 68,070 Operating Department General Sales After-Sales Departmental costs $ 232,830 $ 292,500 5,e00 5,000 40,e00 40,00e 33,000 28,000 6,e00 Employee time Space occupied 10,eee 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 $321.410 $335,534

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Multiple Choice
$321,410
$335,534
$335,670
$332,888
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Transcribed Image Text:Multiple Choice $321,410 $335,534 $335,670 $332,888 < Prev 2 of 10 Next > Ps
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
General Physical
Management Plant
$ 33,384 $ 68,070
6,000
Operating Department
Sales
After-Sales
$ 232,830
$ 292,500
Departmental costs
Employee time
Space occupied
33,000
28,000
5,000
40,000
10,e00
5,000
40,000
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
$321,410
$335,534
< Prev
2 of 10
Next >
ENG
hp
Transcribed Image Text: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 General Physical Management Plant $ 33,384 $ 68,070 6,000 Operating Department Sales After-Sales $ 232,830 $ 292,500 Departmental costs Employee time Space occupied 33,000 28,000 5,000 40,000 10,e00 5,000 40,000 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 $321,410 $335,534 < Prev 2 of 10 Next > ENG hp
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