1) Gomez Company has two service departments Maintenance and Personnel as well as two production departments Mixing and Finishing. Maintenance costs are allocated based on square footage while personnel costs are allocated based on number of employees. The following information has been gathered for the current year _____. Maintenance Personnel Mixing Finishing Direct dept. costs $126000 $84000 $105000 $175000 Square footage 800 400 1600 1200 Number of employees 8 12 24 32 If the step-down method is used to allocate costs and the Maintenance Department is allocated first the amount of overhead that would be allocated from Maintenance to Mixing is:A. $36000B. $42750C. $42000D. $630002) _____ is (are) used for external reporting.A. Absorption costing and variable costingB. Direct costingC. Variable costingD. Absorption costing 3) _____ is another term for variable costing.A. Absorption costingB. Traditional costingC. Direct costingD. Full costing4) In absorption costing costs are separated into the major categories of_____.A. variable and non manufacturingB. fixed and variableC. manufacturing and fixedD. manufacturing and non manufacturing
