Cope, Inc Has the Following Costs and Usage Data for Its

Multiple Choice

Cope, Inc. has the following costs and usage data for its support departments: Percent of Support Services Provided to
Direct Support Departments Operating Departments
Costs A B C 1 2
Services Provided By:
A $50,000 ---- 20% 10% 40% 30%
B 60,000 20% ---- 20% 20% 40%
C 30,000 10% 10% ---- 50% 30%
If the step-down method is used, and the order of allocation is department B first, then A, and finally C, the amount of support department A costs allocated to operating department 2 will be:

A) $15,000
B) $23,250
C) $24,000
D) $18,600