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:

Urban Areas

Regions characterized by high population density and vast human features in contrast to areas dominated by natural landscapes.

Tay-Sachs Alleles

Genetic variants associated with Tay-Sachs disease, a fatal genetic disorder that causes progressive destruction of the nervous system in infants and young children.

Homozygous

Having two identical alleles for a particular gene, resulting in a specific trait being expressed in an organism.

Heterozygotes

Individuals carrying two different alleles for a specific gene, one inherited from each parent.