Use the information below to answer the following question(s).The owner of Hi-Tech Fiberglass Fabricators Inc.is interested in using the reciprocal allocation method.The following data from operations were collected for analysis.Budgeted manufacturing overhead costs:
Service furnished:
By Plant Maintenance (budgeted labour hours)
By Data Processing (budgeted computer time)

-Which method allows for partial recognition of the services rendered by support departments to other support departments?
A)the direct allocation method
B)the single-step allocation method
C)the reciprocal allocation method
D)the dual-rate method
E)the step-down allocation method

Question

Use the information below to answer the following question(s).The owner of Hi-Tech Fiberglass Fabricators Inc.is interested in using the reciprocal allocation method.The following data from operations were collected for analysis.Budgeted manufacturing overhead costs:
  Service furnished:
By Plant Maintenance (budgeted labour hours)
  By Data Processing (budgeted computer time)
 
-Which method allows for partial recognition of the services rendered by support departments to other support departments?
A)the direct allocation method 
B)the single-step allocation method 
C)the reciprocal allocation method 
D)the dual-rate method 
E)the step-down allocation method

Quizplus · Accepted Answer

The step-down allocation method allows for partial recognition of services rendered by support departments to other support departments by allocating costs sequentially.

Use the Information Below to Answer the Following Question(s)