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Seymore Uses the Step-Down Method of Cost Allocation and Allocates

Question 11

Multiple Choice

Seymore uses the step-down method of cost allocation and allocates cost on the basis of employees.Human Resources cost amounts to $1,200,000,and the department provides more service to the firm than Cafeteria.How much Human Resources cost would be allocated to Cafeteria?


A) $88,888.
B) $28,572.
C) $44,444.
D) $0.
E) Some other amount.

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