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The controller of Reycar Corporation instructs the cost supervisor to use an algebraic procedure for allocating service department costs to producing departments. The corporation's
The controller of Reycar Corporation instructs the cost supervisor to use an algebraic procedure for allocating service department costs to producing departments. The corporation's three producing departments are served by three service departments, each of which consumes part of the services of the other two. After primary but before reciprocal distribution, the account balances of the service departments and the interdependence of the departments were tabulated as follows Departmental Overhead Before Distribution of Services Provided by General Department Mixing Refining Finishing Service Departments Powerhouse Personnel Factory $125,000 90,000 105,000 25% 35% 25% 25 30 20 20 20 20 Powerhouse 16,000 10 20 Personnel General Factory 29,500 10 15 42.000 $407,500 20 100% 100% 100% Required: The final amount of overhead of each service department after reciprocal transfer costs have been calculated algebraically. The total factory of each producing department. 1. 2.
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