Question: (Appendix 11A) Boa Corp., uses the direct method to allocate service department overhead costs to operating departments. Information for the month of June follows: Service

(Appendix 11A) Boa Corp., uses the direct method to allocate service department overhead costs to operating departments. Information for the month of June follows:

Service MaintenanceDepartments UtilitiesDepartmental cost incurred$29,000$16,000Service provided to departments: Maintenance 10%Utilities20% Operating A40%30%Operating B40%60%

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

Multiple Choice

$8,000

$14,500

$10,000

$20,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!