Tyler Tool Co. has two producing departments, Planers and Radial Drills, and two service departments, Maintenance and Utilities. Service departments costs are allocated to producing departments by the direct method. The following data were collected:

Required:
(1) Compute the billing rate for each of the two service departments.
(2) Calculate the total predetermined factory overhead for each of the two producing departments and their departmental factory overhead rates based on direct labor hours. Service department costs are distributed on the basis of the billing rates calculated in requirement 1. Carry all computations to three decimal places.
(3) Prepare an analysis of the over- or under applied factory overhead of each producing department for January, including spending and idle capacity variances. Service department costs are charged on the basis of actual hours (maintenance or kilowatt) multiplied by the billing rate. This method treats these costs as variable.
(4) Prepare a calculation and analysis of the over- or under applied factory overhead in each service department, including the spending and idle capacity variances. (Round off all amounts to four decimal places.)
(5) Prepare a reconciliation of the total variances.

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Producing Departments Service Departments Radial Planers Drills Maintenance Utilities Estimated data for 20A: Fixed overhead.. Variable overhead. Total $18,000 $15,000 6,000 4,800 4,5003,600 15,000 9,000 $33,000 $24000 10.500 8400 Direct labor hours Maintenance hours Kilowatt-hours... 7,500 1,000 25,000 12,000 2,500 45,000 3,500 70,000 Actual data for January 20A: Fixed overhead Variable overhead. Total 1,500 1,250 1.050 500 400 310 …… 1620 670 $3,120 $2.300 s1170-710 Direct labor hours Maintenance hours.. Kilowatt-hours.... 1,020 320 4,000 680 80 2,000 400 6,000