Use the Following Information for the Next 2 Questions

question 86

Multiple Choice

Use the following information for the next 2 questions.
Cope, Inc. has the following costs and usage data for its support departments:
-If the step-down method is used, and the order of allocation is department B first, then A, and finally C, the amount of support department A costs allocated to operating department 2 will be

• A) $15,000
• B) $23,250
• C) $24,000
• D) $18,600

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Definitions:

Increases Assets

Transactions or events that enhance the economic resources controlled by a business.

Purchase Requisition

An internal document used within an organization to request authorization for a purchase before a purchase order is issued.

Purchase Order

An official document issued by a buyer committing to pay the seller for the sale of specific products or services to be delivered in the future.