3. The estimated departmental factory overhead for producing department A and B and the estimated costs of service departments G, H, and I (before any service department allocations)are:

Producing DepartmentService Department

A.........$60,000 G................... $20,000

B......... 90,000 H.....................20,000

I....................10,000

The interdependence of the departments is as follows:

Service Provided by

Department G H I

Producing----A..................................... -- 30% 40%

Producing----B..................................... 50% 40 30

Service ---G........................................ -- 20

--Service ---H........................................ 20

Service ---I........................................ 30 10--

Store L..................................... ---- 20

Store M..................................... --- 10

Total 100% 100% 100%

Required:1-Compute the final amount of estimated overhead of each service department after reciprocal transfer costs have been calculated algebraically. 2-Compute the total factory overhead of each producing department and the amount of department G cost assigned to the Store 1 and to Store 2.