Total Service Departmetn Costs reads 18300 4000

IThe following information applies to the questions displayed below Travelcraft, Inc, manufactures a complete line of fiberglass suitcases and attach cases. The firm has three manufacturing departments: Molding. Component, and Assembly. There are also two service departments Power and Maintenance. The sides of the cases are manufectured in the Molding Department. The frames, hinges, and locks are manufactured in the Component Department. The cases are completed in the Assembly Department Varyr amounts of materials, time, and effort are required for each of the cases. The Power Department and Maintenance Department provide services to the three manufacturing departments Travelcraft has always used a plantwide overhead rate. Direct-labor hours are used to assign overhead to products. The predetermined overhead rate Is calculated by dividing the company's total estimated overheac by the total estimated direct-labor hours to be worked in the three manufacturing departments Karen Mason, director of cost management, has recommended that Travelcraft use departmental overhead rates. The planned operating costs and expected levels of activity for the coming year have been developed by Mason and are presented by department in the following schedules. (All numbers are in thousands.) Manufacturing Departments Molding Component Assembly Department activity measures Direct-labor hours Machine hours 500 915 2.300 1.200 160 Departmental costs Direct material Direct labor Variable overhead FIxed overhead $12,900 $35,000 s 1,350 25,000 15,000 6,000 4700 3.800 19,800 12.000 22.200 5,900 Total departmental costs $41,200 $81.000 $ 41.450 Use of service departments Maintenance Estimated usage in labor hours for the coming year Estimated usage for the coming Maximum ollotted copacity n0 30 20 Power (in kilowatt-hoursy year 600 500 400 900 450 450 Service Departments Deportmentol activity measures Maximum copacity 1800 kilowatt-hours 1.500 kliowatt-hours Estimated usage for the coming year Depetmental costs 160 hours Materials and supplies Venable labor Fixed overhead $ 5,000 2,200 11,100 S 1300 2,660 240 $18 300