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

question 23

Multiple Choice

Karnofski 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.
-In the first step of the allocation, the amount of Service Department A cost allocated to the Operating Department X is closest to:

• A) $13,599
• B) $18,426
• C) $16,123
• D) $17,430

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Definitions:

Trimester

A term used to divide the nine-month period of pregnancy into three equal parts, each roughly three months long, to describe the stages of fetal development.

Developing Fetus

The stage in pregnancy when an embryo develops into a fetus, characterized by significant growth and development of bodily structures and organ systems.

Syphilis

A sexually transmitted infection that can attack major organ systems.

Utero

Utero refers to anything related to the uterus or occurring within the uterus, often used in medical or biological contexts concerning pregnancy or fetal development.