Use the Following Information for the Next 4 Questions

question 34

Multiple Choice

Use the following information for the next 4 questions.
Quinlan, Inc. has two support departments (maintenance and personnel) and two operating departments (tables and chairs) . The maintenance department provides more services to the personnel department than the personnel department provides to maintenance. Once the support department costs have been allocated to the operating departments, each operating department allocates its total costs to units produced.
-Assume the step-down method is used. The amount of cost allocated from personnel to the table department is

• A) $11,200
• B) $12,503
• C) $8,938
• D) $12,600

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Definitions:

Rate Of Substitution

The rate at which a consumer can replace one good with another while maintaining the same level of utility.

Tee Shirts

A type of clothing characterized by short sleeves and a round neckline without a collar, commonly made of cotton or polyester.

Candy

A sweet food made primarily of sugar or syrup combined with flavoring, colorants, and sometimes chocolate or nuts.

Marginal Rate

Often refers to the additional rate of tax that applies to each extra dollar of income or the additional rate of return.