Use the Following Information for the Next 6 Questions

question 105

Multiple Choice

Use the following information for the next 6 questions.
The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected:
-If the step-down method is used and maintenance is allocated first, cafeteria costs allocated to packaging will be

• A) $34,704
• B) $55,757
• C) $28,125
• D) $54,792

---

Definitions:

Acronym

A word formed from the initial letters of other words, used for brevity in writing and speaking.

Abbreviation

The shortened form of a word or phrase.

Misinterpreted

To understand or interpret incorrectly; to draw the wrong conclusion from.

Abbreviation

A shortened form of a word or phrase used to simplify communication.