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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

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 50 % 0 10 % 40 %
Administration 20 % 0 10 % 50 % 20 %
Maintenance 0 20 % 0 30 % 50 %
Direct cost $ 36,000 $ 171,000 $ 45,000 $ 315,000 $ 90,000

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

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 50 % 0 10 % 40 %
Administration 20 % 0 10 % 50 % 20 %
Maintenance 0 20 % 0 30 % 50 %
Direct cost $ 36,000 $ 171,000 $ 45,000 $ 315,000 $ 90,000

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

all information given is present

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