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4. BONUS = 20 POINTS (Optional) The controller of Reycar Corporation instructs the cost supervisor to use an algebraic procedure for allocating service department costs
4. BONUS = 20 POINTS (Optional) The controller of Reycar Corporation instructs the cost supervisor to use an algebraic procedure for allocating service department costs to producing departments. The corporation's three producing departments are served by three service departments, each of which consumes part of the services of the other two. After primary but before reciprocal distribution, the account balances of the service departments and the interdependence of the departments were tabulated as follows Departmental Overhead Services Provided by Before Distribution of General Department Service Departments Powerhouse Personnel Factory Mixing $125,000 25% 35% 25% Refining 90,000 25 30 20 Finishing 105,000 20 20 20 Powerhouse 16,000 10 20 Personnel 29,500 10 15 General Factory 42.000 20 5 $407,500 100% 100% 100% Required: 1. The final amount of overhead of each service department after reciprocal transfer costs have been calculated algebraically. 2. The total factory of each producing department
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