Sherman Corporation distributes its service department overhead costs directly to producing departments without allocation to the other

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Sherman Corporation distributes its service department overhead costs directly to producing departments without allocation to the other service departments. Information for March 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%

Refer to Sherman Corporation. Assume that Sherman Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs?

Posted Date: May 13, 2024 05:46 AM

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Sherman Corporation distributes its service department overhead costs directly to producing departments without allocation to the other

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