The Following Information Relates to Osceola Corporation for the Past

question 9

Multiple Choice

The following information relates to Osceola Corporation for the past accounting period.
$$\begin{array} { l r } & \text { Direct costs } \\\text { Service Department A } & \$ 80,000 \\\text { Service Department B } & 60,000 \\\text { Producing Department C } & 15,006 \\\text { Producing Department D } & 20,000\end{array}$$
$$\begin{array}{l}\text { Propartion of sernceby } A \text { to: }\\\mathrm { B } & 10 \% \\\mathrm { C } & 60 \% \\\mathrm { D } & 30 \%\end{array}$$
$$\begin{array} { l l } \text { Proportion of service by B to: } \\\text { A } & 30 \% \\\text { C } & 20 \% \\\text { D } & 50 \%\end{array}$$
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Using the reciprocal (simultaneous solution) method, Department B's cost allocated to Department C (rounded to the nearest whole dollar) is:

• A) $29,021
• B) $14,021
• C) $13,192
• D) $7,794

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