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Prestwich Corporation Has Two Service Departments and Two Operating Departments

question 49

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Prestwich Corporation has two service departments and two operating departments. Costs of the Building and Grounds service department are allocated to other departments on the basis of square feet of space occupied. The departments in the company and the amount of space occupied by each are presented below: Prestwich Corporation has two service departments and two operating departments. Costs of the Building and Grounds service department are allocated to other departments on the basis of square feet of space occupied. The departments in the company and the amount of space occupied by each are presented below:   Budgeted costs in the Building and Grounds department total $34,800 for the year.Assuming the step-down method is used and Building and Grounds costs are allocated first, the amount of Building and Grounds costs allocated to the Cafeteria would be: A)  $0 B)  $4,800 C)  $4,640 D)  $5,568 Budgeted costs in the Building and Grounds department total $34,800 for the year.Assuming the step-down method is used and Building and Grounds costs are allocated first, the amount of Building and Grounds costs allocated to the Cafeteria would be:

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Definitions:

Multiply

To increase a number by a specified factor, or the operation of adding a number to itself a certain number of times.

Simplify

To alter an expression to make it easier to understand or work with, often by combining like terms or applying mathematical operations.

Multiply

The process of calculating the total of one number added to itself a specified number of times.

Missing Factor

In mathematics, the unknown quantity in a multiplication problem that, when multiplied by a known quantity, gives a specific product.

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