Use the following information for the next 5 questions.
Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given:
-If the step-down method was used and utilities allocated first, how much computer cost would be allocated to the utilities department?
A) $0
B) $18,200
C) $13,750
D) $8,250

Question

Use the following information for the next 5 questions.
Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B). The following data are given: 
-If the step-down method was used and utilities allocated first, how much computer cost would be allocated to the utilities department?
A) $0 
B) $18,200 
C) $13,750 
D) $8,250

Quizplus · Accepted Answer

In the step-down method, once a department's costs are allocated, it does not receive allocations from other departments. Since utilities are allocated first, they do not receive any allocation from the computer department.

Use the Following Information for the Next 5 Questions