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Goodland Corporation Uses the Step-Down Method to Allocate Service Department

question 15

Multiple Choice

Goodland 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.
-In the first step of the allocation,the amount of Service Department A cost allocated to the Operating Department X is closest to:

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Definitions:

Rhomboideus Group

A collection of muscles in the back that connect the spinal column to the shoulder blades, aiding in the movement and stabilization of the scapula.

Deltoid Group

A muscle group responsible for lifting the arm and giving the shoulder its range of motion.

Trapezius Group

A major muscle group in the back that extends from the neck to the middle of the spine and out to the shoulder, involved in moving, rotating, and stabilizing the scapula.

Incision

A cut made through the skin and tissue during surgery, usually made with a scalpel or other sharp instrument.