Font TO SAVE YOUR WORK Maintenance 05 edetermined overhead rates Machine hours Direct labour hours 2.500 1,000 500 13.300 2. Assume that the company bids on a job that requires the following machine hours and direct labour hours. You may need highlighted cells. Milling Finishing Total | Finishing Milling . 41 42 How much overhead would have been applied to the job if the direct method had been used? (3 marks) 43 44 45 s 46 6 ) 48 Espa 0 49 New . H 50 f4e3 SP DM 3 R Wino View DATA HOME Font Name K Cut Copy B Maintenance CLICK HERE TO SAVE YOUR WORK A Severson Products (SP) has three service departments - Cafeteria, Custodial Services and Maintenance Store Milling and Finishing. SP allocates the cost of Cafeteria on the basis of number of employees, Custodial Servis on the square metres and Maintenance on the basis of machine hours. Milling applies overhead based on machine hours number of direct labour hours. Milling 1 Budgeted operating data for the upcoming year follows: 2 3 3,400 4 5 6 7 8 Service Departments Operating Departments Custodial Cafeteria Services Maintenance Budgeted overhead before allocation $310,000 $66.000 s $93,900 $412.941 Number of employees 26 41 67 Square metres 12.800 11,000 45 Od 9 Machine hours 184,500 10 Direct labour hours 14 000 11 12 Required: 13 1. Prepare a schedule to allocate service department costs to operating departments using the direct method. Calculate the predetermined 14 overhead rate for each operating department. (8 marks). You may not need to use all the highlighted cells. " SP DM3 New 8 7 2 16 A u SBA %