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, the total cost of support department C will be:

A) $30,000
B) $37,750
C) $42,000
D) $49,750