Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reflects the use of the Maintenance Department's and Computing Department's output by the various departments. Using Department Service Department Maintenance Computing Etching Finishing Maintenance (maintenance hours) 1, 000 1, 000 8 , 000 Computing (minutes ) 240, 000 840 , 000 120 , 000 2. Use the step-down method to allocate service department costs. Allocate the Computing Department's costs first. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round "Overhead rate per hour" to 3 decimal places and other answers to the nearest dollar amount.) Service Departments Production Departments Computing Maintenance Etching Finishing Costs prior to allocation Allocation of Computing Department costs Allocation of Maintenance Department costs $ 0 Total service department cost allocated $ 0 $ 0 Overhead costs traceable to production departments Total overhead cost $ 0 $ 0 Direct-labor hours (DLH) Overhead rate per hourCelestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reects the use of the Maintenance Department's and Computing Department's output by the various departments. Using Department Service Department Maintenance Cowput ing Etching Finishing Maintenance (maintenance hours) 0 1,000 1,000 8,000 Computing (minutes) 240,000 0 840,000 120,000 Required: 1. Use the reciprocal-services method to allocate service department costs. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. 2. Which of the three methods of service department cost allocation results in the most accurate overhead rates? Complete this question by entering your answers In the tabs below. ReqUirEd 1 Use the reciprocal-services method to allocate service department costs. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round the "Overhead rate per hour" to 3 decimal places. Amounts to be deducted should be indicated by a minus sign.) Traceable costs Allocation of Maintenance Department costs Allocation of Computing Department costs Total service department costs allocated Overhead costs traceable to production departments Total overhead cost Required 2 > Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000. and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reects the use of the Maintenance Department's and Computing Department's output by the various departments. Using Deeutment Service Department Ma intenance Computing Etching Finishing Maintenance (maintenance hours) 0 1,000 1,000 8,000 Computing (minutes) 240,000 0 840,000 120,000 Required: 1. Use the reciprocal-services method to allocate service department costs. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. 2. Which of the three methods of service department cost allocation results in the most accurate overhead rates? Complete this question by entering your answers In the tabs below. Required 1 Required 2 Which of the three methods of service department cost allocation results in the most accurate overhead rates? OReciprccal services allocation method ODirect allocation method OStepdown method