Eden, Inc. has two (2) producing departments and three(3) service departments. A summary of costs and other data for each department prior to allocation of service department costs for the year ended October 31, 2018, shows: PRODUCING DEPTS. Fabri- Assembly SERVICE DEPARTMENTS General Main- Caf- cation Factory tenance teria Direct labor cost P8,400,000 P8,200,000 P360,000 P328,400 P348,000 Direct material cost 6,260,000 1,900,000 135,400 182,000 Factory overhead cost 3,300,000 3,700,000 140,000 112,200 124,000 Direct labor hours 225,000 No. of employees Square footage occupied 70 88,000 175,000 50 12,400 10,800 16,800 3 2 5 72,000 1,750 2,000 4,800 The costs of General Factory, Maintenance, and Cafeteria are allocated on the basis of direct labor hours, square footage occupied, and number of employees, respectively. There are no factory overhead variances. REQUIRED: 1. Compute the amount of Maintenance cost allocated to Fabrication, assuming that the company elects to distribute service department costs directly to the producing departments, without the inter-service department cost allocation. 2. Compute the amount of General Factory cost allocated to Assembly assuming the same policy of allocating service departments to producing departments only. 3. Assuming that the company elects to distribute service departments costs to other service departments (starting with the service department with the greatest total cost), as well as to the producing departments, and that once a service department's cost has been allocated, no subsequent service department cost is re-circulated back to it, compute: a. the amount of Cafeteria cost allocated to Maintenance, and b. the amount of Maintenance cost allocated to Cafeteria. EXERCISE 11-11 Harry Corporation is developing departmental overhead rates based upon direct labor hours for its two(2) producing departments- Molding and Assembly. The Molding Department employs 5 people, and the Assembly Department employs 16 people. Each person in these two(2) departments works 8,000 hours per year. The production-related overhead costs for the Molding Department are budgeted at P600,000 and the Assembly Department costs are budgeted at P960,000. Two(2) service departments- Repair and Power- support the two(2) production departments and have budgeted costs of P144,000 and P750,000, respectively. The production departments' overhead rates cannot be computed until the service departments' costs are properly allocated. The following schedule reflects the use of the Repair Department's and Power Department's output by the various departments. REQUIRED: SERVICES PROVIDED Department Repair Hour KWH Molding 2,000 840,000 Assembly 16,000 120,000 Repair 240,000 Power 2,000 Totals 20,000 1,200,000 1. Calculate the overhead rates per direct labor hour for the two(2) producing depart- ments, allocating service department costs to producing departments only, (Round rates to the nearest centavo.) 2. Calculate the overhead rates per direct labor hour for the producing departments, using the algebraic method to distribute service department costs. (Round rates to the nearest centavo.)