Use the Following Information for the Next 4 Questions

question 34

Multiple Choice

Use the following information for the next 4 questions.
Quinlan, Inc. has two support departments (maintenance and personnel) and two operating departments (tables and chairs) . The maintenance department provides more services to the personnel department than the personnel department provides to maintenance. Once the support department costs have been allocated to the operating departments, each operating department allocates its total costs to units produced.
-Assume the step-down method is used. The amount of cost allocated from personnel to the table department is

• A) $11,200
• B) $12,503
• C) $8,938
• D) $12,600

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Definitions:

Unearned Revenue

Money received by a company from a customer for products or services to be delivered or performed in the future.

Prepaid Rent

Prepaid rent refers to payments made in advance for rent, recorded as an asset on the balance sheet until it is consumed or the rental period elapses.

Notes Payable

Financial obligations or loans evidenced by promissory notes that a company or individual owes and is required to pay in the future.

Salaries Expense

Salaries expense represents the total amount paid to employees for services rendered during a specific period, including wages, bonuses, and other compensation.