Question: 11. The allocation method that would provide this manufacturer with the theoretically best allocation of service department costs would be a. A dual-rate allocation method

11. The allocation method that would provide this manufacturer with the theoretically best allocation of service department costs would be

a. A dual-rate allocation method allocating variable cost on expected actual usage and fixed costs on long-run capacity usage.

b. The step-down allocation method.

c. The direct allocation method.

d. The reciprocal (or linear algebra) allocation method.

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