6. Senen corporation has two service departments (maintenance and security) and two producing departments (assembly and finishing). The following are the percentage usage of each department.

			use of maintenance dept	use of security dept
Maintenance					5	%
Security			10	%
Assembly			60	%		40	%
Finishing			30	%		55	%

The maintenance department cost is 900,000 and security department cost is 500,000.

• Compute the service cost allocated to security department using direct method.
• Compute the service cost allocated to maintenance department using step method.
• Compute the service cost allocated to security department using reciprocal method

7. JYD manufacturing company has two production departments: Fabrication and assembly and three service departments (general factory administration, factory maintenance, and factory cafeteria).

A summary of the year's overhead cost and other data for each department prior to allocation of service department costs appears below:

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Fabrication Assembly Gen. Factory Adm. Factory Main. Factory Cafe. OH Costs DL Costs P6,730,000 P4,850,000 P160,000 P203,200 P240,000 562,500 437,500 31,000 27,000 42,000 # of Employees 280 200 12 8 20 Sq. Footage Occupied 88,000 72,000 1,750 2,000 4,800 Fabrication Assembly Gen. Factory Adm. Factory Main. Factory Cafe. OH Costs DL Costs P6,730,000 P4,850,000 P160,000 P203,200 P240,000 562,500 437,500 31,000 27,000 42,000 # of Employees 280 200 12 8 20 Sq. Footage Occupied 88,000 72,000 1,750 2,000 4,800