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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:
Per-unit Standards
Benchmark cost measures for the production of one unit of a product, covering all relevant costs of production.
Gallons
A unit of volume used primarily in the United States to measure liquids.
Materials Variance
The difference between the expected cost of direct materials and the actual cost incurred.
Price Variance
The difference between the actual cost of a good or service and its expected or budgeted cost.
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