For the Month of October, the Accounting and IT Departments

question 35

Multiple Choice

For the month of October, the Accounting and IT departments incurred costs of $180,000 and $260,000, respectively. The company uses the step-down method to allocate support costs with the accounting costs being allocated first followed by the IT costs. Costs are being consumed in the following manner: Using the step-down method, how much of the total support activity costs (Accounting and IT) will be allocated to the Fabrication department?

• A)$119,000
• B) $104,200
• C) $97,000
• D) $99,900

Compute the cost of units transferred out of a department under the weighted-average method.

Recognize the differences in total cost allocation between the step-down and direct methods.

Recognize and apply the calculation of equivalent units of production under FIFO method.

Understand and calculate the cost per equivalent unit for conversion costs in various scenarios.

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Definitions:

Concern For Self

The consideration and care for one's own interests, well-being, or safety.

Obliging

A conflict management style characterized by attempting to minimize differences and emphasizing commonalities to satisfy the concerns of the other party.

Conflict Style

A person's typical approach to handling disagreements, ranging from avoidant to collaborative strategies.

Competitiveness

The desire to win or be more successful than others.