Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded: Supplying Department Using Department Engineering Administration Maintenance Fabrication Assembly Engineering 0 60 % 0 20 % 20 % Administration 15 % 0 10 % 50 % 25 % Maintenance 0 20 % 0 30 % 50 % Direct cost $ 50,000 $ 290,300 $ 45,000 $ 250,000 $ 90,000

Supplying Department	Using Department
	Engineering			Administration			Maintenance			Fabrication			Assembly
Engineering		0			60	%		0			20	%		20	%
Administration		15	%		0			10	%		50	%		25	%
Maintenance		0			20	%		0			30	%		50	%
Direct cost	$	50,000		$	290,300		$	45,000		$	250,000		$	90,000

Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.)

	Allocated to:
	Costs	Fabrication	Assembly
Engineering
Administration
Maintenance
Total		$0	$0