Use the Following Information for the Next 6 Questions

question 37

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, the total cost allocated to the cutting department will be

• A) $55,757
• B) $39,243
• C) $20,822
• D) $40,208

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Definitions:

Foot-In-The-Door

A compliance tactic that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Indebtedness

The state of owing money or being under a moral obligation to repay a benefit or service received.

Reciprocity

denotes a mutual exchange of privileges or benefits between parties, often observed in social and economic contexts.

Persuasion

The process by which one person tries to change the belief, opinion, position, or course of action of another person through argument, pleading, or explanation.