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

question 13

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.
-The total Operating Department Y cost after allocations is closest to:

• A)$423,352
• B)$425,820
• C)$416,220
• D)$425,966

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Definitions:

Genotypic Frequencies

The proportion of different genotypes in a population, which can change over time due to evolutionary processes.

Nonevolving Population

A theoretical population in which allele frequencies do not change over time, effectively not undergoing evolution.

Speciation

Origin of new species due to the evolutionary process of descent with modification.

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population over time.