Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Depanment employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 1,200 hours per year. The productionrelated overhead costs for the Etching Department are budgeted at $120,000r and the Finishing Department costs are budgeted at $240,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $4?,640 and $340,000, 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 Department Service Department Maintenance Computing Etching Finishing Maintenance (maintenance hours) 6 1,136 1,186 9,446 Computing (minutes) 261,536 6 915,636 136,336 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