In order to better match cost with revenues, Lewisville Corporation distributes its service department overhead costs  to producing departments.  Information for April is presented here.   Maintenance Utilities Overhead costs incurred $18,700 $9,000 Service provided to:     Maintenance Dept.   10% Utilities Dept. 20%   Producing Dept. A 40% 30% Producing Dept. B 40% 60%       Assume that Lewisville Corporation distributes service department overhead costs based on the algebraic method. What would be the formula to determine the total maintenance costs? Group of answer choices M = $18,700 + .10U M = $9,000 + .20U M = $18,700 + .30U + .40A + .40B M = $27,700 + .40A + .40B

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.