Multiple Choice
San Juan Minerals (SJM) has two service departments and two operating departments. Operating data for these departments for last year are as follows: 
Costs of the Maintenance Department are allocated on the basis of machine hours. Cafeteria costs are allocated on the basis of number of employees. San Juan Minerals does not distinguish between variable and fixed overhead costs.Assume that San Juan Minerals uses the step-down method to allocate service department costs, starting with Maintenance. The total overhead allocated from Cafeteria to Processing would be closest to:
A) $21,316
B) $22,398
C) $21,279
D) $23,643
Correct Answer:
Verified
Correct Answer:
Verified
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