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Valdez Company Has Two Service Departments,Maintenance and Personnel

Question 72

Multiple Choice

Valdez Company has two service departments,Maintenance and Personnel.Valdez 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: Valdez Company has two service departments,Maintenance and Personnel.Valdez 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 Maintenance Department is allocated first.What amount of costs would be allocated from the Maintenance Department to the Personnel Department? A) $0 B) $5,040 C) $6,300 D) $16,800 Assume the step-down method is used to allocate service department costs and the Maintenance Department is allocated first.What amount of costs would be allocated from the Maintenance Department to the Personnel Department?


A) $0
B) $5,040
C) $6,300
D) $16,800

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