EXERCISE 11-10 The controller of George Corporation instructs the cost supervisor to use an algebraic procedure for allocating service department costs to producing departments. The corporation's three(3) producing departments are served by three (3) service departments, each of which consumes part of the services of the other two(2). After primary but before reciprocal distribution, the account balances of the service departments and the interdependence of the departments were tabulated as follows: Department Departmental Overhead Before Distribution of SERVICES PROVIDED Powerhouse Personnel General Factory Service Depts. Mixing P1,200,000 25% 35% 25% Refining 540,000 25% 30% 20% Finishing 630,000 20% 20% 20% Powerhouse 96,000 10%-5% 20%-15% Personnel 177,000 -10% 20% +5% 20% General Factory 252,000 20% 10% -5%10% Totals P2,895,000 100% 100% 100% REQUIRED: 1. Compute the final amount of overhead of each service department after reciprocal transfer costs have been calculated algebraically. 2. Compute the total factory overhead of each producing department. 3. The Mixing Department's predetermined overhead rate is based on machine hours. The total rate is P36.00, 40% of which is fixed. Fixed factory overhead budgeted is P576,000. The actual machine hours for the period were 37,000. Compute the spending and idle capacity variance for the corporation.