Eilers Company has two producing departments and two support departments. The following budgeted data pertain to these four departments:

Required:
1. Allocate the overhead costs of the support departments to the producing departments using the reciprocal method.
2. Using direct labor hours, compute departmental overhead rates. (Round to the nearest
cent.)

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Support DepartmentsProducing Departments Direct overhead Square footage Number of receiving orders Direct labor hours General Factory Receiving Assembly Finishing $160,000 $43,000 $74,000 5,400 1,020 ー 25,000 40,000 S400,000 2,700 5,400 1,680 300