Chambers, Inc

question 93

Multiple Choice

Chambers, Inc. has two support departments (utilities and computer) and two operating departments (A and B) . The following data are given: Services Provided By
Utilities Computer
Direct costs $55,000 $75,000
Services provided to:
Utilities ---- 15%
Computer 25% ----
Operating department A 35% 55%
Operating department B 40% 30%
If the step-down method is used and utilities allocated first, how much computer cost would be allocated to the utilities department?

• A)$0
• B)$18,200
• C)$13,750
• D)$8,250

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Definitions:

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The system of production, distribution, and consumption of goods and services within a specific geographical region.

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The primary sector of the economy involves extracting and harvesting natural resources, such as agriculture, mining, forestry, and fishing.