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:

Budgeted Sales

Projected sales revenue, often part of a company’s financial planning process to estimate future income from sales.

Cash Disbursements

Outflows of cash for expenses, investments, and other payments made by a business.

Materials Purchases

The acquisition of raw materials or supplies required for the production of goods or provision of services.

Payment Discount

A reduction in the invoice amount offered by a seller to the buyer in return for early payment within a specified time frame.