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Service Department Cost Allocation Presented below are certain operating data for the four departments of Modern Manufacturing Company. Identifiable and allocated overhead $ Reallocation of
Service Department Cost Allocation Presented below are certain operating data for the four departments of Modern Manufacturing Company. Identifiable and allocated overhead $ Reallocation of service departments: Dept. 1 Factory floor space Dept. 2 Number of factory workers 1 2 1 2 Total manufacturing overhead costs either identifiable with or allocated to each department $157,500 $210,000 $192,500 $406,000 Square feet of factory floor space 315,000 157,500 50 Number of factory workers 90 112,000 87,500 Planned direct labor hours for the year Allocate, to the two production departments, the costs of service departments 1 and 2, using factory floor space and number of workers, respectively, as bases. Do Not round bases when calculating reallocations of service departments
$ Production 1 $ Production 2 $ Production Departments 1 $ Service 2 Production 4 Total manufacturing overhead What is the apparent manufacturing overhead rate for each production department if planned direct labor hours are the overhead application (Round answers to two decimal places, when applicable.)
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