Midland Resources has two production departments (Fabricationand Assembly) and three service departments (Engineering,Administration, and Maintenance). During July, the following costsand service department usage ratios were recorded:
Supplying Department
Using Department
Engineering
Administration
Maintenance
Fabrication
Assembly
Engineering
0
40
%
0
15
%
45
%
Administration
20
%
0
25
%
45
%
10
%
Maintenance
0
20
%
0
20
%
60
%
Direct cost
$
40,000
$
254,400
$
40,000
$
225,000
$
80,000
Required:
Allocate the service department costs to the two operatingdepartments using the reciprocal method. (Do not roundintermediate calculations.)
Engineering: _____(Costs) , ______(Fabrications) ,______(Assembly)
Administration: ______(Costs) , ______(Fabrications) ,______(Assembly)
Maintenance: ______(Costs), ______(Fabrications) ,______(Assembly)
Total: (—) , ($_____) , ($______)
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