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

question 15

Multiple Choice

Wisneski Corporation uses the step-down method to allocate service department costs to operating departments. The company has two service departments, General Management and Physical Plant, and two operating departments, Sales and After-Sales. Data concerning those departments follow:
General Management Department costs are allocated first on the basis of employee time and Physical Plant Department costs are allocated second on the basis of space occupied. The total After-Sales Department cost after allocations is closest to:

• A) $251,200
• B) $261,249
• C) $263,460
• D) $262,820

---

Definitions:

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and fear, often leading to negative emotional states.

Muscle Stiffness

A condition characterized by rigidity in muscles and limited movement, often resulting from exercise, injury, or health conditions.

Anxiety

A state of being anxious, fretful, or troubled, usually over a looming event or an indeterminate outcome.

Immune System

The complex network of cells, tissues, and organs that protect the body against infection and disease.