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Using the Direct Method allocate the amounts of overhead from each service department to each production department Problem 3 - Direct method - Service department

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Problem 3 - Direct method - Service department -- Service department costs - 12 total pointseldon ABCO Mortgage Company has the following two service and product its lending and servicing business: wo service and production departments related to Service Departments Production Lending Departments Department cost Accounting Commercial Consumer $150,000 $200,000 $1,800,000 $900,000 4 39 I Number of transactions 1.800 T 700 2,100 I HK costs are allocated on the basis of number of employees. Accounting allocated based on the number of transactions. Number of employees 61 Required: Using the Direct Method allocate the amounts of overhead from each service department to each production department

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