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Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Enginering, Administration, and Maintenance) During July,the following costs and senvice department usage
Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Enginering, Administration, and Maintenance) During July,the following costs and senvice department usage ratios were recorded Department Engineering 60% 20% 50% 20% 15% 1096 25% 60% 20% Direct cost 558,000 $329,000 $50,000 $270,000 590,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations) to: Costs Administration Totai Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Enginering, Administration, and Maintenance) During July,the following costs and senvice department usage ratios were recorded Department Engineering 60% 20% 50% 20% 15% 1096 25% 60% 20% Direct cost 558,000 $329,000 $50,000 $270,000 590,000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations) to: Costs Administration Totai
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