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M&P Tool has three service departments that support the production area. Outlined below is the estimated overhead by department for the upcoming year:
The Repair Department supports the greatest number of departments, followed by the Tool Department. Overhead cost is allocated to departments based upon the number of employees. If M&P uses the step-down method of allocation, the allocation from the Repair Department to the Tool Department would be A. $7000 B. $875 C. $11667 D. $0 |
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