The Managers at Elliot Manufacturing Are Discussing Ways to Allocate

Multiple Choice

The managers at Elliot Manufacturing are discussing ways to allocate the cost of support departments such as Quality Control and Maintenance to the operating departments. To aid them in this discussion, the controller has provided the following information: Budgeted hours of service:
If Elliot Manufacturing uses the step-down method of allocating support costs beginning with quality control, the maintenance costs allocated to the Assembly Department would be:

A) $70,000
B) $108,000
C) $162,000
D) $200,000