Preparing a worksheet to prorate service department costs. Harris Manufac- turers produce wooden cabinets. The balances of the departmental overhead analysis sheets for June show the following costs:

Prepare a worksheet for prorating service department costs, similar to that on page 254 of the text. The overhead cost of the Building Services Department is allocated on the basis of the percent of space occupied. The overhead cost of the General Factory Department is allocated on the basis of direct labor costs as shown in Exercise 1.

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Department Cost Percent of Floor Space Building Services $10,000 General Factory 12,000 30 Milling 14,000 25 Assembly 3,000 28 Finishing 5,000 17