1C3P WILCOX INDUSTRIAL HAS TWO SUPPORT DEPARTMENTS, THE INFORMATION S...

221. CSO: 1C3d LOS: 1C3p

Wilcox Industrial has two support departments, the Information Systems Department and

the Personnel Department, and two manufacturing departments, the Machining

Department and the Assembly Department. The support departments service each other

as well as the two production departments. Company studies have shown that the

Personnel Department provides support to a greater number of departments than the

Information Systems Department. If Wilcox uses the step-down method of departmental

allocation, which one of the following cost allocations would not occur? Some of the

costs of the

a. Personnel Department would be allocated to the Information Systems

Department.

b. Information Systems Department would be allocated to the Personnel

c. Personnel Department would be allocated to the Assembly Department.

d. Personnel Department would be allocated to the Assembly Department and the

Machining Department.