Multiple Choice
Walton Corporation Walton Corporation has two service departments: Data Processing and Administration/Personnel. The company also has three divisions: X, Y, and Z. Data Processing costs are allocated based on hours of use and Administration/Personnel costs are allocated based on number of employees.
Assume that Data Processing provides more service than Administration/Personnel.
Refer to Walton Corporation. Assume that Data Processing costs have been allocated and the balance in Administration is $600,000. Using the step method, what amount is allocated to Y?
A) $225,000
B) $128,571
C) $187,500
D) $200,000
Correct Answer:
Verified
Correct Answer:
Verified
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