The Uinta Company has two service departments and two operating departments. The following data are available from last year: The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied respectively. No distinction is made between fixed and variable costs.
-Assuming that Uinta allocates service department costs by the direct method,the total overhead costs allocated from Department 2 to Department Y are:
A)$22,400
B)$16,800
C)$42,000
D)$14,000

Question

The Uinta Company has two service departments and two operating departments. The following data are available from last year: The costs of service departments 1 and 2 are allocated on the basis of number of transactions and square feet occupied respectively. No distinction is made between fixed and variable costs.
-Assuming that Uinta allocates service department costs by the direct method,the total overhead costs allocated from Department 2 to Department Y are:
A)$22,400 
B)$16,800 
C)$42,000 
D)$14,000

Quizplus · Accepted Answer

The Answer is B

The Uinta Company Has Two Service Departments and Two Operating