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Homework answers / question archive / B Co
B Co. allocates service department cost directly to producing departments without allocation to other service department. The two service departments are maintenance dept and utilities dept. The producing departments are dept 1 and Dept 2. Overhead cost of Maintenance dept is 20,000 while utilities have OH cost of 10,000. The percentage of service provided by Maintenance dept are as follows: 20% to utilities dept; 40% to Dept 1 and 40% to Dept 2. The percentage of service provided by Utilities dept are as follows: 10% to maintenance dept: 30% to Dept 1 and 60% to Dept 2. What is the total cost allocated to Department?
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