1.

					Service Used By
Dep't	Cost	Personnel	Security	Maintenance	Cutting	Sewing	Finishing
Personnel	1,000,000		10%	10%	30%	40%	10%
Security	400,000	10%		10%	30%	20%	30%
Maintenance	100,000	10%	10%		40%	20%	20%
Cutting	800,000
Sewing	1,200,000
Finishing	660,000
Direct Material					1,850,000	50,000	780,000
Direct Labor					700,000	2,550,000	1,740,000
Actual Factory Overhead					300,000	500,000	700,000

a. Using Direct Method, how much is the total service cost allocated to Finishing Department? b. Using reciprocal method, how much is the factory overhead rate of cutting department assuming the producing department uses direct labor hours with 40,000 for cutting, 60,000 for sewing and 20,000 for finishing department? c. How much is the total service cost allocated to cutting department using Reciprocal Method?