Service Department Cost Allocation

Presented below are certain operating data for the four departments of Tally Manufacturing Company.

	Service		Production
	1	2	1	2
Total manufacturing overhead costs either identifiable with or allocated to each department	$120,000	$144,000	$180,000	$196,000
Square feet of factory floor space			80,000	160,000
Number of factory workers			60	20
Planned direct labor hours for the year			40,000	60,000

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	2
Identifiable and allocated overhead	Answer	Answer
Reallocation of service departments:
Dept. 1 Factory floor space	Answer	Answer
Dept. 2 Number of factory workers	Answer	Answer
Total manufacturing overhead	Answer	Answer

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.

Production 1	Answer
Production 2	Answer