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Amman Company has two service departments (Cleaning and Maintenance) and two production departments (Production A and Production B). Departmental estimated data obtained from the company's
Amman Company has two service departments (Cleaning and Maintenance) and two production departments (Production A and Production B). Departmental estimated data obtained from the company's budget for January, 2021 were as follows: Costs Manufacturing Cleaning JOD 27,000 Maintenance JOD 18,000 Production A Production B JOD 50,000 JOD 60,000 Overhead Costs The production Manager identified the following allocation information regarding the overhead costs: 1. Cleaning Department: It provides cleaning services to other department as follows: 20% to Maintenance, 30% to Production A, and 50% to Production B. 2. Maintenance Department: It provides Maintenance services to other department as follows: 10% to Cleaning, 50% to Production A, and 40% to Production B. As an expert in controlling costs, you are asked to: 1. Allocate the total overhead costs within the service departments to operating department for January 2021. 2. The total overhead costs to be identified to product A and B for January 2021
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