Use the Following Information for the Next 6 Questions

question 123

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 reciprocal method is used, the total amount that will be allocated for maintenance is

• A) $52,022
• B) $55,952
• C) $50,211
• D) $57,034

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Definitions:

Purchase

Purchase refers to the act of obtaining goods or services in exchange for money or other valuable consideration.

Gift

Something voluntarily transferred by one person to another without compensation or consideration.

Consideration

The bargained-for exchange; what each party gets in exchange for his or her promise under a contract.

Causa Mortis Gift

A gift given by someone who believes they are about to die, intended to take effect only upon the death of the giver.