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