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Murphy Company Has Two Service Departments,Maintenance and Personnel

Question 46

Multiple Choice

Murphy Company has two service departments,Maintenance and Personnel.Murphy Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: Murphy Company has two service departments,Maintenance and Personnel.Murphy Company also has two production departments,Mixing and Finishing.Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees.The following information has been gathered for the current year: Assume the step-down method is used to allocate service department costs and the Personnel Department is allocated first.What is the amount of costs allocated from the Personnel Department to the Mixing Department? A) $29,746 B) $31,500 C) $58,500 D) $63,000 Assume the step-down method is used to allocate service department costs and the Personnel Department is allocated first.What is the amount of costs allocated from the Personnel Department to the Mixing Department?


A) $29,746
B) $31,500
C) $58,500
D) $63,000

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