Use the Following Information for the Next 5 Questions

question 60

Multiple Choice

Use the following information for the next 5 questions.
The managers at Ithaca Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information.
-(CMA) If Ithica Manufacturing uses the step-down method of allocating support costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be

• A) $70,000
• B) $108,000
• C) $162,000
• D) $200,000