(Appendix 4B) Strzelecki Corporation Uses the Step-Down Method to Allocate

question 42

Multiple Choice

(Appendix 4B) Strzelecki Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Service Department A and Service Department B, and two operating departments, Operating Department X and Operating Department Y. Data concerning those departments follow:
Service Department A costs are allocated first on the basis of allocation base A and Service Department B costs are allocated second on the basis of allocation base B.
-The total Operating Department Y cost after allocations is closest to:

• A) $320,486
• B) $318,473
• C) $320,260
• D) $307,660