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Lewisville Corporation To better match cost to revenues Lewisville Corporation distributes its service department overhead...

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Accounting

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

Answer & Explanation Solved by verified expert
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