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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 $ 324,000
Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Service Departments Maintenance Utilities $ 324,000 $ 699,000 5% Overhead costs incurred Service provided to departments Maintenance Utilities Producing-A Producing-B Totals 10% 20 70 100% 40 55 100% Required: 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? (Round percentage calculations to 4 decimal places (e.g., 33.3333%), do not round intermediate calculations and round your final answers to the nearest dollar amount.) Producing Department A Producing Department B Total Producing Department Cost $ 0 1. The direct method The step method 3. The reciprocal method $ 0 $ 0
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