Chambers, Inc

question 46

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 are allocated first, how much total cost would be allocated to operating department B?

• A)$76,676
• B)$44,500
• C)$53,324
• D)$74,196

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Definitions:

Oxidation

Oxidation is a chemical reaction involving the loss of electrons by an atom, molecule, or ion.

Oxidation Number

A number assigned to an element in chemical combination which represents the number of electrons lost or gained by an atom of that element in the compound.

Compound

A substance made up of atoms of two or more different elements chemically bonded together.

Oxidation Number

A number that represents the total number of electrons an atom either gains or loses in order to form a chemical bond with another atom.