Question
Ezzell Corporation Ezzell Corporation distributes its service department overhead costs directly to producing departments without allocation to the other service departments. Information for January is
Ezzell Corporation
Ezzell Corporation distributes its service department overhead costs directly to producing departments without allocation to the other service departments. Information for January is presented here.
| Activities | Maintenance | Utilities |
|---|---|---|
| Overhead costs incurred | $18,700 | $9,000 |
| Service provided to: | - | - |
| Maintenance Dept. | - | 10% |
| Utilities Dept. | 20% | - |
| Producing Dept. A | 40% | 30% |
| Producing Dept. B | 40% | 60% |
Refer to Ezzell Corporation. Assume that Ezzell Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs?
Group of answer choices
M=$18,700+.10U
M=$9,000+.20U
M=$18,700+.30U +.40A +.40B
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The Practice Of Modern Internal Auditing
Authors: Lawrence B Sawyer
2nd Edition
0894130927, 978-0894130922
