Refer to the data in Exercise 7-11. The company has decided to simplify its method of allocating

Question:

Refer to the data in Exercise 7-11. The company has decided to simplify its method of allocating support service costs by switching to the direct method.

Required:

1. Allocate the costs of the support departments to the producing departments using the direct method.

2. Using direct labor hours, compute departmental overhead rates.

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