Assume Potter's Manufacturing Has a Janitorial Department That Supports the Maintenance

question 14

Multiple Choice

Assume Potter's Manufacturing has a Janitorial Department that supports the Maintenance Department and two line activity departments, Department A and Department B.Janitorial and Maintenance are allocated to other departments on the basis of square footage of space used.The amount of space used by each department is listed below:
$$\begin{array} { l c } \text { Department } & \text { Square Footage Used } \\\text { Janitorial } & 600 \\\text { Maintenance } & 900 \\\text { Department A } & 4,500 \\\text { Department B } & 9,000\end{array}$$
The expected cost for the Janitorial Department is expected to be $9,000.Using the step-down method, what is the amount of janitorial costs will be allocated to Maintenance?

• A)$0
• B)$540
• C)$562.50
• D)$5,400
• E)None of the above.

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