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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 Engineering Administration Maintenance Direct cost ing Department Administration 40% Fabrication 15% 50% 30% Assembly 45% 25% 50% Engineenng enance 15% 1096 2096 544,000 5286,200 545,000 5235,000 580,000 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
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