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2. (CPA adapted) Boa Corp. allocates support department overhead costs to operating departments X and Y by means of the reciprocal allocation method. Information for
2. (CPA adapted) Boa Corp. allocates support department overhead costs to operating departments X and Y by means of the reciprocal allocation method. Information for the current month is as follows:Support Departments A B Overhead costs $20,000 $10.000 Services provided to departments: 10% 20% 40% 30 % 40 % 60% 100% 100% The linear equation to be used in the allocation of Department A's costs is: a. A = $20,000 + 0.20B. b. A = $10,000 + 0.10B. C. A = $10,000 + 0.20B. d. A = $20,000 + 0. 10B
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