Completing a worksheet for prorating service department costs. Seventh Avenue Designs Inc. is’ divided into service departments and producing departments. The Warehousing Department, which carries out receiving, storing, and shipping functions, and the Maintenance Department are service departments.

The Cutting, Sewing, and Finishing Departments are producing departments. The Maintenance Department serves the other departments in proportion to the area occupied by each department.

Instructions 1. Prepare a worksheet for prorating estimated service department costs for the year 19X5. The totals of the departmental overhead budgets are as follows:

2. Summarize your computations for the bases and the prorations on three-column analysis paper. (Keep your papers for use in Problem 9-4.)

Transcribed Image Text:

Department Square Feet Warehousing 10,500 Cutting 17,500 Sewing 14,000 28,000 Finishing The costs of the Warehousing Department are allocated to the producing depart- ments on the basis of the number of materials requisitions filled. Number of Materials Department Requisitions Cutting 3,920 Sewing 5,880 Finishing 4,200