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18.3A) Complete a worksheet for prorating service department costs. (Ob4) DLM Dres Manufacturers, Inc. is divided into service departments and producing departments The Warehousing Department, which carries out Chapter 8 Setting Overhead Rates 183 receiving, storing, and shipping functions, and faintenance Department are service departments. The Cutting, Sewing, and Finishing Departments are producing departments. The Maintenance Department serves the other departments in proportion to the area occupied by each department. Department Warehousing Cutting Sewing Finishing Square Feet Occupied 10,500 17,500 14,000 28,000 The costs of the Warehousing Department are allocated to the producing department the basis of the number of materials requisitions processed s on Department Cutting Sewing Finishing Number of Materials Requisitions 3,920 5,880 4,200 Instructions 1. Prepare a worksheet for prorating estimated service department costs for the year 2006. The budgeted departmental overhead is as follows: Estimated Direct Department Maintenance Warehousing Cutting Sewing Finishing Departmental Overhead Costs $29,210 21,390 35,870 41,552 26,760 2. Summarize your computations for the bases and the prorations on three-column analy sis paper. (Keep your papers for use in Problem 8.4A.)

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