Question

In: Accounting

Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the...

Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June:

Service Departments
Maintenance Utilities
Overhead costs incurred $ 486,000 $ 657,000
Service provided to departments
Maintenance 5 %
Utilities 10 %
Producing—A 20 40
Producing—B 70 55
Totals 100 % 100 %

Required:

What is the amount of maintenance and utilities department costs distributed to producing departments A and B for June using (1) the direct method, (2) the step method (maintenance department first), and (3) the reciprocal method? (Round percentage calculations to 4 decimal places (e.g., 33.3333%), do not round intermediate calculations and round your final answers to the nearest dollar amount.)

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