Question
JME has the following data from his service and production departments Service 1 is library, incurs $50,000 of cost, and is driven by square feet.
JME has the following data from his service and production departments Service 1 is library, incurs $50,000 of cost, and is driven by square feet. Service 2 is tech support, incurs $70,000 of cost, and is driven by hours. Production 1 is Cutting - Production 2 is Polishing Provider User S1 S2 S1 - 20 S2 30 - P1 100 60 P2 90 80 Required You are to determine how much of the $120,000 will be in each production department (P1 and P2) when they determine their departmental overhead rates. You need to do this under 4 approaches direct, step (2 ways) and reciprocal. You should round to whole dollars and NOT worry if you are off a very few dollars.
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