The Mohawk-Hudson Company Is an Electric Utility Which Has Two

question 38

Multiple Choice

The Mohawk-Hudson Company is an electric utility which has two service departments, Accounting and Maintenance. It has two operating departments, Generation and Transmission. The company does not distinguish between fixed and variable service department costs. Maintenance Department costs are allocated on the basis of maintenance hours. Accounting Department costs are allocated to operating departments on the basis of accounting hours of service provided. Budgeted costs and other data for the coming year are as follows: The step-down method is used to allocate service department costs, with the accounting department being allocated first.
-The amount of Accounting Department costs allocated to the Generation Department would be:

• A) $42,857
• B) $57,143
• C) $38,000
• D) $45,000

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Definitions:

Recognition Memory

The ability to identify a previously encountered stimulus.

Recall

The mental process of retrieval of information from the past.

Zone of Proximal Development

A concept in educational psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Skilled Partner

A competent individual in a relationship or teamwork setting, proficient in contributing effectively to mutual goals.