Bronson, Inc

Multiple Choice

Bronson, Inc. has two support departments, Personnel and Maintenance, whose costs are to be allocated to the operating department's overhead for budgeting and inventory costing purposes. Projected amounts for the next year follow: If the step-down method is used and the largest department (in terms of direct costs) is allocated first, the total cost allocated to assembly will be:

A) $32,200
B) $39,933
C) $29,317
D) $24,500