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# 18_33 - Total service department costs allocated Overhead...

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Problem 18-33 Student Name: Class: 1. Reciprocal-services method: Equations: M = 48,000 + .2C C = 250,000 + .1M where M denotes the total cost of the Maintenance Department C denotes the total cost of the Computing Department Solution of equations: Maintenance Department budgeted costs Computing Department budgeted costs Computing proportion Maintenance proportion M = C = Allocation: Service Departments Production Dep Maintenance Computing Etching Traceable costs Allocation of Maintenance Department costs 0.1 Allocation of Computing Department costs

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Unformatted text preview: Total service department costs allocated Overhead costs traceable to production departments Total overhead cost Direct-labor hours (DLH) Overhead rate per hour Check on allocation procedure: Service department costs allocated to Etching Service department costs allocated to Finishing Total costs to be allocated 2. Which of the three methods of service department cost allocation results in the most accurate overhead rates? Why? artments Finishing...
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18_33 - Total service department costs allocated Overhead...

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