Dainels Corporation Uses the Step-Down Method to Allocate Service Department

question 309

Multiple Choice

Dainels Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow: General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to:

• A) $307,880
• B) $313,792
• C) $313,656
• D) $311,010

---

Definitions:

Digital Content

Information or media that is created, shared, and accessed electronically, such as text, images, videos, and audio.

Distribution Methods

Various strategies or channels used to deliver products or information to consumers or end-users.

Printed Message

Information or content that is conveyed through physical print media, such as books, magazines, or flyers.

Audio Or Video Option

The choice to use sound or visual media to convey information.