The support department cost that will be allocated to the Macro Division is
A)$405,000
B)$175,000
C)$130,000
D)$305,000

Question

Quizplus · Accepted Answer

Without specific details on how the support department costs are allocated to the Macro Division, it's impossible to provide a detailed explanation. The correct answer would depend on the allocation method used (e.g., direct method, step-down method, reciprocal method), the total costs of the support departments, the bases of allocation (e.g., square footage, direct labor hours, machine hours), and the specific figures related to the Macro Division. Since no data or context is provided, a precise explanation for why $405,000 is the correct allocation cannot be given.

The Support Department Cost That Will Be Allocated to the Macro