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The Uinta Company Has Two Service Departments and Two Operating

question 38

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The Uinta Company has two service departments and two operating departments. The following data are available from last year: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. -Assume that Uinta allocates service department costs by the step-down method,starting with Department 1.The total overhead costs allocated from Department 2 to Department Y are: A) $18,000 B) $24,000 C) $21,000 D) $25,200 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.
-Assume that Uinta allocates service department costs by the step-down method,starting with Department 1.The total overhead costs allocated from Department 2 to Department Y are:


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