Carson Corporation Carson Corporation Has Three Production Departments A, B

question 144

Multiple Choice

Carson Corporation Carson Corporation has three production departments A, B, and C. Carson Corporation also has two service departments, Administration and Personnel. Administration costs are allocated based on value of assets employed, and Personnel costs are allocated based on number of employees. Assume that Administration provides more service to the other departments than does the Personnel Department.
Refer to Carson Corporation. Using the step method, what amount of Administration costs is allocated to A (round to the nearest dollar) ?

• A) $72,973
• B) $291,892
• C) $145,946
• D) $389,189

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