For Cost Accountng;

1. 

Problem 21: Service Cost Allocation Randy Corp has three service departments and two producing departments. The following information are available for year 2030: Cost Personnel Services used by Personnel 70,000 Maintenance Security 10% Assembly Finishing Maintenance 30,000 30% 30% 40% 10% 20% Security 10,000 5% 25% 30% 30% 500,000 50% 20% Assembly Finishing 200,000 The producing department uses direct labor hours with 20,000 for assembly and 30,000 for finishing in determining the factory overhead rate. Required: Determine the factory overhead rate using a. Direct method b. Step method