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:

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, income, employment, industrial production, and wholesale-retail sales.

Store-Wide Sale

A promotional event where discounts are offered on most or all items within a store.

Superiors

Individuals in higher positions or ranks within an organization, with authority or managerial responsibility over others.

Myopic Loss Aversion

The tendency of investors to react disproportionately to short-term losses compared to long-term gains.