The Uinta Company Has Two Service Departments and Two Operating

question 10

Multiple Choice

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:

• A)$22,400
• B)$16,800
• C)$42,000
• D)$14,000

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