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NUBD Corporation distributes its service department overhead costs directly producing departments without allocation to the other service departments. Information for January is presented here. Maintenance P18,700 Utilities Overhead costs incurred Service provided to: Maintenance Dept. Utilities Dept. Producing Dept. A Producing Dept. B P9,000 10% 20% 40% 30% 40% 60%

NUBD Corporation distributes its service department overhead costs directly producing departments without allocation to the other service departments. Information for January is presented here. Maintenance P18,700 Utilities Overhead costs incurred Service provided to: Maintenance Dept. Utilities Dept. Producing Dept. A Producing Dept. B P9,000 10% 20% 40% 30% 40% 60%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the step method, how much of NUBD Corporation’s Utilities Department cost is allocated between Departments A and B?

NUBD Corporation distributes its service department overhead costs directly to producing departments without allocation to the other service departments. Information for January is presented here. Maintenance P18,700 Utilities P9,000 Overhead costs incurred Service provided to: Maintenance Dept. Utilities Dept. Producing Dept. A Producing Dept. B 10% 20% 40% 30% 40% 60%
Transcribed Image Text:NUBD Corporation distributes its service department overhead costs directly to producing departments without allocation to the other service departments. Information for January is presented here. Maintenance P18,700 Utilities P9,000 Overhead costs incurred Service provided to: Maintenance Dept. Utilities Dept. Producing Dept. A Producing Dept. B 10% 20% 40% 30% 40% 60%
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