Quezaire Corporation, a Manufacturer, Uses the Step-Down Method to Allocate

question 50

Multiple Choice

Quezaire Corporation, a manufacturer, uses the step-down method to allocate service department costs to operating departments. The company has two service departments, Administration and Facilities, and two operating departments, Assembly and Finishing. Data concerning those departments follow: Administration Department costs are allocated first on the basis of labor hours and Facilities Department costs are allocated second on the basis of space occupied.
-The total Finishing Department cost after allocations is closest to:

• A) $528,859
• B) $525,110
• C) $528,790
• D) $519,190

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Definitions:

Research Psychologists

Professionals who study cognitive, emotional, and social processes by observing, interpreting, and recording how individuals relate to one another and their environments.

ESP

Extra-sensory perception, the claimed ability to obtain information without the use of known sensory mechanisms.

Telepathy

The claimed transfer of data between individuals without employing recognized human sensory methods or direct physical contact.

Psychokinesis

Psychokinesis refers to the supposed ability to move or manipulate objects with the mind, without physical intervention.