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Assume Millard Allocates Service Department Costs by the Step-Down Method

Question 9

Multiple Choice

Assume Millard allocates service department costs by the step-down method with Service Department A allocated first. After all allocations, the total amount of overhead cost in Operating Department 2 will be closest to:


A) $128,000
B) $127,000
C) $154,143
D) $102,833

Correct Answer:

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