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Service Department Cost Allocation Presented below are certain operating data for the four departments of Tally Manufacturing Company. Allocate, to the two production departments, the
Service Department Cost Allocation
Presented below are certain operating data for the four departments of Tally Manufacturing Company.
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.
What is the apparent overhead rate for each production department if planned direct labor hours are the overhead application base?
Round answers to two decimal places, when applicable.
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