JME has the following data from his service and production departments -

S1 is maintenance, incurs $20,000 of cost, and is driven by square feet

S2 is tech support, incurs $15,000 of cost, and is driven by machine hours

Production 1 is Cutting - Production 2 is Finishing

	Provider
User	S1	S2
S1	-	10
S2	20	-
P1	40	45
P2	30	65

Required -

Determine how much of the $35,000 service overhead will be in each production department (P1 and P2) when determining their departmental overhead rates. Determine under 4 approaches - direct, step (2 alternatives) and reciprocal.Round to whole dollars.

Answer rating: 100% (QA)

Allocating Service Overhead Costs JME JME needs to allocate 35000 of service overhead costs to its p... View the full answer