Celestial Artistry Company is developing departmental overhead rates based on directlabor hours for its two production departments, Etching and Finishing. The Etching Department employs 30 people and the Finishing Department employs 70 people. Each person in these two departments works 1,800 hours per year. The productionrelated overhead costs for the Etching Department are budgeted at $220,000, and the Finishing Department costs are budgeted at $340,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $47,960 and $260,000, respectively. The production departments' overhead rates cannot be determined until the service departments' costs are allocated. The following schedule reects the use ofthe Maintenance Department's and Computing Department's output by the various departments. Using Depa rtrlent Service Department Maintenance Calputing Etching Finishing Maintenance (maintenance hours) 0 1,020 1,020 8,160 Computing (minutes) 242,400 0 048,400 121,200 Required: 1. Use the reciprocalservices method to allocate service department costs. Calculate the overhead rates per directlabor 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? Use the reciprocalservices 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.) Allocation of Maintenance Department costs Allocation of Computing Department costs Total service department costs allocated Overhead costs traceable to production departments _ 220,1]00 34D,DEIU Total overhead cost _ 5'. 220,000 $ 340,000 Direct-labor hours (DLH'J 54,000 126,013\") eeeeeeeeeeeeeeee __