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Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities Overhead
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities Overhead costs incurred $ 115,000 $ 65,000 Service provided to departments 15% Maintenance Utilities Producing-A Producing-8 Totals Required: 25% 25 40 50 45 100% 100% What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Do not round Intermediate calculations. Round final answers to the nearest dollar.) 1. The direct method 2. The step method 3. The reciprocal method Producing Producing Department A Department B Total Service Department Cost
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