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