Bob Stone, Inc., budgets the following amounts for its Buildings & Grounds and Computer Services Departments...

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Accounting

Bob Stone, Inc., budgets the following amounts for its Buildings& Grounds and Computer Services Departments in servicing eachother and the two manufacturing divisions of Signs andMailers:
Used By
Supplied By
Building & Grounds
Computer Services
Signs
Mailers
Buildings & Grounds
—
0.20
0.60
0.20
Computer Services
0.15
—
0.30
0.55
If you are using the step down method to allocate supportdepartment costs which of the support departments would youallocate the costs from second:
a.
Computer Services
b.
Building and Grounds
c.
Mailers
d.
Signs

Answer & Explanation Solved by verified expert

4.4 Ratings (707 Votes)

Option B is correct ie building and grounds Dept Building and ground support deptt Takes only 15 from computer and service support deptt but gives the 20 to computer and service support deptt Whereas computer See Answer

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	Used By
Supplied By	Building & Grounds	Computer Services	Signs	Mailers
Buildings & Grounds	—	0.20	0.60	0.20
Computer Services	0.15	—	0.30	0.55