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Botox Corp. uses the direct method to allocate service department overhead costs to operating departments.Information for the month of June follows: What would be the

Botox Corp. uses the direct method to allocate service department overhead costs to operating departments.Information for the month of June follows:

What would be the amount of maintenance department costs allocated to Operating Department A for June?

a)$8,000

b)$8,800

c)$10,000

d)$20,000

image text in transcribed
Service Departments Maintenance Utilities Departmental costs incurred $ 20,000 $10,000 Service provided to departments: Maintenance 10% Utilities 20% Operating - A 40% 30% Operating - B 40% 60%

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