The Accountant for Milton, Inc

Multiple Choice

The accountant for Milton, Inc. is preparing the budgets for operating department support service costs. Maintenance costs are allocated based on square feet, and cafeteria costs are allocated based on number of employees. The following data have been collected: If the step-down method is used and maintenance is allocated first, the total cost allocated to the cutting department will be:

A) $55,757
B) $39,243
C) $20,822
D) $40,208