For the month of October, the Accounting and IT departments incurred costs of $180,000 and $260,000, respectively. The company uses the step-down method to allocate support costs with the accounting costs being allocated first followed by the IT costs. Costs are being consumed in the following manner: Using the step-down method, how much of the total support activity costs (Accounting and IT) will be allocated to the Fabrication department?
A)$119,000
B) $104,200
C) $97,000
D) $99,900

Question

For the month of October, the Accounting and IT departments incurred costs of $180,000 and $260,000, respectively. The company uses the step-down method to allocate support costs with the accounting costs being allocated first followed by the IT costs. Costs are being consumed in the following manner:  Using the step-down method, how much of the total support activity costs (Accounting and IT) will be allocated to the Fabrication department? 
A)$119,000 
B) $104,200 
C) $97,000 
D) $99,900

Quizplus · Accepted Answer

The Answer of For the month of October, the Accounting and IT departments incurred costs of $180,000 and $260,000, respectively. The company uses the step-down method to allocate support costs with the accounting costs being allocated first followed by the IT costs. Costs are being consumed in the following manner:  Using the step-down method, how much of the total support activity costs (Accounting and IT) will be allocated to the Fabrication department? 
A)$119,000 
B) $104,200 
C) $97,000 
D) $99,900

For the Month of October, the Accounting and IT Departments