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housed in the new premises, the details of which, together with other statistics and information, The two production departments - A and B, and the

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housed in the new premises, the details of which, together with other statistics and information, The two production departments - A and B, and the two service departments - X and Y are are given as follows: Service Depts. X Y 2,200 1,200 1,200 800 100 110 800 $3.50 $1.30 Departments Production Depts. A B Machine value 2,400 2.600 M2 2.500 2,000 Number of workers 150 120 Direct labour hours 1,900 1,700 Labour rate per hour $2.60 Service department X's costs apportioned %65 %35 Service department Y's costs apportioned %40 %60 900 $3 Required: 1. Assign all overhead costs to all departments (Step 1) (20PTS) 2. Assign service department costs to production departments by using Direct method (Step 2) (20PTS). 3. Find overhead application rates for production departments (Cost driver for both Production departments is direct labour hours) (12PTS). yailal

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