Question: 10. The BVC Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support
10. The BVC Company separates its activities into two operating departments and two support departments. Support Department 1 had budgeted costs of $90,000 and Support Department 2 had budgeted costs of $180,000 during the month of April. BVC allocates the costs of each support department based on service hours. The table here shows how many service hours each support department provided to the two operating departments, to the other support department, and to itself. Support Support Operating Operating 1 2 2 Support 1 20 25 27 48 Support 1,000 400 3,000 2,000 2 Total Service Hours Provided BE 120 6,400 If BVC uses the step-down method starting with Support Department 1 to allocate support department costs, how much will be allocated to Operating Department 1 and Operating Department 2, respectively, in April? A. $133,200 and $136,800 B. $145,800 and $124,200 C. $140,400 and $129,600 D. $139,461 and $130,539
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