Use the Following Information for the Next 4 Questions

question 27

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 maintenance is

• A) $1,500
• B) $1,687.50
• C) $9,000
• D) $0

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Definitions:

Random Sample

A sampling method where each member of a population has an equal chance of being selected, minimizing bias and making the sample representative of the population.

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