Question: Using the Direct Method allocate the amounts of overhead from each service department to each production department Problem 3 - Direct method - Service department

Using the Direct Method allocate the amounts of overhead from each service department to each production department Using the Direct Method allocate the amounts of overhead from each service

Problem 3 - Direct method - Service department -- Service department costs - 12 total pointseldon ABCO Mortgage Company has the following two service and product its lending and servicing business: wo service and production departments related to Service Departments Production Lending Departments Department cost Accounting Commercial Consumer $150,000 $200,000 $1,800,000 $900,000 4 39 I Number of transactions 1.800 T 700 2,100 I HK costs are allocated on the basis of number of employees. Accounting allocated based on the number of transactions. Number of employees 61 Required: Using the Direct Method allocate the amounts of overhead from each service department to each production department

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