Question

Steven Parker owns and operates Stevens Septic Service and Legal Advice. Stevens two revenue generating (production) operat


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Answer #1

The correct answer is $ 15300

Calculation

Cost allocated to septic service operations

= allocated variable cost + allocated fixed cost

= (50×(13600/(50+25+5))) + (80×(10200/(80+20+20)))

= 8500 +6800

= $ 15300

Thus the correct answer is $ 15300

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