Cordner Corporation Has Two Production Departments: P1 and P2 and Two

question 85

Multiple Choice

Cordner Corporation has two production Departments: P1 and P2 and two service departments: S1 and S2.Direct costs for each department and the proportion of service costs used by the various departments for the month of July are as follows:
Under the step-method of cost allocation,the amount of S2 costs allocated to S1 would be:

• A) $40,000.
• B) $20,000.
• C) $0.
• D) $42,000.

---

Definitions:

Noise

Unwanted sound that can interfere with communication or distract from work.

Effective Listener

A person who actively engages in listening, fully concentrating, understanding, and responding thoughtfully to what is being said.

Judges Content

The evaluation and assessment of content by an individual or panel with expertise or authority in a specific field.

Delivery

The act of transporting or conveying an item from one location to another, also applicable in contexts such as speech where it refers to the manner of presenting information.