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Lewisville Corporation To better match cost to revenues Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here.
Lewisville Corporation To better match cost to revenues Lewisville Corporation distributes its service department overhead costs to producing departments. Information for April is presented here.
- | 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% |
Using the step method, how much of Lewisville's Corporations Utilities Department cost is allocated between Departments A and B? (order of allocation begins with Maintenance)
Group of answer choices
$9,900
$27,700
$12,740
$10,800
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