CoursHeroTranscribedText: Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering,...
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CoursHeroTranscribedText: Midland Resources has two production departments (Fabrication and Assembly) and three service departments (Engineering, Administration, and Maintenance). During July, the following costs and service department usage ratios were recorded. Supplying Using Department Department Engineering Administration Maintenance Fabrication Assembly Engineering 40% 15% 45% Administration 20% 25% 45% 10% Maintenance 20% 30% 50% Direct cost $32, 000 $222, 800 $40, 000 $205, 000 $50, 000 Required: Allocate the service department costs to the two operating departments using the reciprocal method. (Do not round intermediate calculations.) Allocated to: Costs Fabrication Assembly Engineering Administration Maintenance Total $ 0 $ 0
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