Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production...
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Accounting
Alpha Company has two service departments (Cafeteria Services & Maintenance Services). Alpha has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are: Cafeteria Services 2 Maintenance Services 2 Printing Department 4 Binding Department 8 Alpha uses the step method for service cost allocation. Use this information to determine for Alpha Company the dollar amount of its Cafeteria costs that are to be absorbed by:
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