Chambers, Inc

question 89

Multiple Choice

Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given: If the step-down method is used and utilities are allocated first, how much total cost would be allocated to operating department B?

• A) $76,676
• B) $44,500
• C) $51,382
• D) $74,196

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Definitions:

Materials

The unprocessed materials and parts employed in goods manufacturing.

Equivalent Units

A method used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.

First-in

A term indicating the prioritization or usage of resources, often in the context of inventory management.

Materials

Raw substances or components that are converted through the manufacturing process into finished goods.