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elena55 [62]
3 years ago
9

Daniels Corporation uses the step-down method to allocate service department costs to operating departments.

Business
1 answer:
larisa86 [58]3 years ago
5 0

Answer:

C 503,980 dollars

Explanation:

\left[\begin{array}{ccccc}&General&Physical&Sales&After-sales\\$General&&2,000&27,000&14,000\\$Physical&1,000&&38,000&7,000\\$Direct \: Cost&36,550&70,300&412,500&480,880\\$Allocate G&-36,550&1,700&22,950&11,900\\$Subtotal&0&72,000&435,450&492,780\\$Allocate P&0&-72000&60,800&11,200\\$Total&&&496,250&503,980\\\end{array}\right]

We determinate each service deparment rate:

general: 36,550 / (2,000 + 27,000 + 14,000) = 0.85

we then assign cost of general department and repeat the process for physical

then for physical we do the same:

72,000 / (38,000 + 7.000) = 1.60

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