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7-38 Departmental Cost Allocation Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments
7-38 Departmental Cost Allocation Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities $115,000 $65,000 15% Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-B Totals 25% 25 40 45 50 100% 100% Required Use four decimal places (e.g., 33.3333%) in your calculations. What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? 7-38 Departmental Cost Allocation Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities $115,000 $65,000 15% Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-B Totals 25% 25 40 45 50 100% 100% Required Use four decimal places (e.g., 33.3333%) in your calculations. What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method
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