Service Department Cost Allocation

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Show transcribed image textService Department Cost Allocation Presented below are certain operating data for the four departments of Modern Manufacturing Company. Production Service Total manufacturing overhead costs either identifiable with or allocated to each department $22,500 $30,000 $27,500 $58,000 Square feet of factory floor space 45,000 22,500 Number of factory workers 30 70 Planned direct labor hours for the year 12,500 16,000 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.

Service Department Cost Allocation Presented below are certain operating data for the four departments of Modern Manufacturing Company. Production Service Total manufacturing overhead costs either identifiable with or allocated to each department $22,500 $30,000 $27,500 $58,000 Square feet of factory floor space 45,000 22,500 Number of factory workers 30 70 Planned direct labor hours for the year 12,500 16,000 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