Kovac printing company has three service departments and two operating departments . selected data for the five departments relating to the most recent period follow.

Use the direct method to allocate the following service costs to the operating departments:

Service departmentoperating department

TrainingjanitorialMaintenanceoffset printinglithographytotal

Overhead costs: $360,000$210,000$96,000$400,000$534,000$1,600,000

Num of employees:120702806304201,520

Square meter of space: 1,0002,0004,0008,00020,00035,000

Press time hours---30,00060,00090,000

Hint:

In your answer also show the final total allocations for both operating departments

topic:

Performance Evaluation/Service Dept Allocation.